Prolonged power outages could halt Ukraine’s mining and metals sector and cause major losses

Prolonged power outages could halt Ukraine’s mining and metals sector and cause major losses

Photo: Pixabay

Prolonged disconnections of mining and metallurgical enterprises from the power grid could lead to serious economic and technological consequences, as such facilities cannot operate on alternative power sources, Ekonomichna Pravda reports.

In a comment to the outlet, Metinvest said that metallurgical and mining enterprises have continuous production cycles and require stable, high-capacity industrial electricity supply. “The production processes of the mining and metals sector technically cannot be replaced by decentralized solutions without the risk of production stoppages, accidents and irreversible damage to equipment,” Metinvest noted.

Unlike retail or service businesses, автономous generators are not a viable solution for such facilities.

The Ukrmetalurgprom association warns that prolonged blackouts of mining and metallurgical enterprises would have large-scale consequences for the economy. Even during wartime, the sector generates a significant share of Ukraine’s GDP — 7.2% in 2024 together with related industries — and provides more than 15% of exports as well as substantial foreign-currency revenues.

In addition, more than 63,000 people are employed directly in the mining and metals sector, and about 400,000 including related industries. In 2024, metallurgy and mining generated around UAH 36 billion in tax revenues, while the total multiplier effect for the economy is estimated at UAH 180 billion, especially in regions where enterprises operate.

Another serious threat is technological risk. Mining and metallurgical enterprises are classified as high-hazard facilities and require uninterrupted electricity supply to prevent accidents and disasters. Metallurgical plants also play an important role in supporting local social and municipal infrastructure.

The energy supply situation remains extremely difficult. Due to massive Russian attacks on energy infrastructure, Metinvest’s assets in the Zaporizhzhia and Dnipropetrovsk regions have been forced to suspend operations repeatedly in recent months. However, thanks to partial availability of in-house generation and prompt actions by staff, the company has managed to avoid technological disasters and restore production after emergency outages.

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