 |
| Manganese Ore |
Pokrovsk Mining and Processing Plant (PGOK), Ukraine's largest manganese ore producer, is preparing to resume operations in 2025 after a one-year hiatus. The company plans to restart the Chkalovsk Concentrator in the first half of the year, focusing on enriching ore stored in warehouses. Additionally, open-pit operations at Severny and Aleksandrovsky are expected to resume mid-year if ferroalloy demand recovers.
Challenges and Strategic Adjustments
PGOK halted operations in 2024 due to declining ferroalloy demand, soaring electricity costs, and an energy crisis. Electricity prices rose from UAH 7.2 per kW in October to UAH 7.9 in December, with a 30% increase in transmission costs in January 2025, adding UAH 300,000 in monthly expenses. Financial strain led to the layoff of 1,656 employees in 2024, marking a challenging period for the company. Despite these setbacks, PGOK is investing in key projects, including reconstructing its carbonate concentrate production facility and restoring water supply through a new pipeline.
Outlook for 2025
The resumption of operations hinges on economic stability in Ukraine and a recovery in global ferroalloy markets. If these conditions improve, PGOK is optimistic about returning to active manganese ore mining and processing, contributing to the revival of the Ukrainian steel industry.
