The company's CEO Mauro Longobardo noted that at the beginning of the year, the company's goal was to achieve a cash neutral position, without the need for cash injections from the parent company, but this was not achieved.
The main problems are related to the need for capital investments to survive in the current conditions - about $150 million annually. However, the initial plan provided for investments of $500-550 million. One of the major projects is the construction of the Karta III tailings storage facility, without which the company will stop ore mining.
In addition, in June 2024, there was an incident with a blackout and a fire at coke battery No. 5, which led to its shutdown. All these factors contributed to significant losses, despite the assistance of the parent company ArcelorMittal.
Also, according to Longobardo, the enterprise faces high electricity tariffs, which account for 70% of the total losses. The Ukrainian mining and metallurgical complex faces other problems, such as a shortage of personnel due to mobilization and low world prices for steel, which reduces competitiveness.
In the first quarter of 2025, AMKR will operate only one blast furnace, and at the moment its capacities are loaded by 30% for metallurgy and by 70-75% for mining operations.
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