Pivdenny Mining and Processing Plant halts production due to port blockades
This has been reported by the Southern Mining and Processing Plant.
The company attributed the decision to Russian attacks on civilian merchant vessels heading for Ukrainian Black Sea ports. Due to the threat to crews, shipowners have temporarily suspended calls at these ports, which has effectively halted the plant’s seaborne shipments.
According to Southern GOK, citing open sources, Russian forces have attacked at least 12 civilian vessels. Among them were ships carrying products from the Ukrainian steel industry.
Several consignments of iron ore products, ready for loading onto ships, have already accumulated at the plant’s warehouses and port terminals. The company cannot continue mining without being able to clear its storage facilities.
This involves a temporary reduction in operations, not a complete closure of the plant. The Southern GOK plans to resume production in August 2026, provided the security situation allows exports to resume.
What will happen to the workers
Whilst production is suspended, employees will be assigned to repair and maintenance work. The company has stated that it will continue to fulfil its obligations to its staff and partners.
The company has not announced any staff reductions or redundancies. The exact duration of the enforced hiatus will depend on the shipping situation in the Black Sea.
Why sea exports are critical for the plant
The Southern Iron Ore Mining and Processing Plant produces iron ore concentrate, a significant proportion of which is sold abroad. Transporting large consignments by sea is cheaper than by rail, so a prolonged closure of ports makes exports more expensive or economically unviable.
The company’s official website states that it was the resumption of seaport operations in 2023 that enabled the plant to resume supplying iron ore products to foreign buyers and to ramp up production.
Problems with maritime logistics have been compounded by other factors driving up the company’s costs: power supply disruptions, rising transport costs, the European Carbon Border Adjustment Mechanism (CBAM) and EU restrictions on Ukrainian steel products.
Are Ukrainian ports blocked?
The Ukrainian government has not closed the Black Sea ports. Taras Vysotskyi, Minister of Agrarian Policy and Food, explained that ship calls had ceased following a decision by shipowners after Russian strikes on port infrastructure and the civilian fleet.
According to him, a brief interruption will not have a decisive impact on annual exports, but a halt to shipping for several months will already lead to significant consequences. The situation may change daily depending on the level of threat and the decisions of shipping companies.
The Southern Mining and Processing Plant has appealed to the President, the Government and the Verkhovna Rada to strengthen the protection of port infrastructure and merchant vessels. The plant has warned that prolonged restrictions on exports threaten not only individual enterprises but also foreign exchange earnings, tax revenues, employment and the funding of local communities.
