Steelmaker Metinvest BV agreed to acquire a controlling stake in top Ukrainian coal producer Pokrovske in a deal that will make Metinvest fully self-sufficient in coking coal for its hot metal production.

In July 2018, Metinvest acquired 24.77% of Pokrovske and an option to purchase the remaining 75.22% from other investors. In October 2020, the Antimonopoly Committee of Ukraine granted Metinvest one year to acquire certain entities under Pokrovske.

Metinvest said March 5 that total consideration for the additional stake was based on the value of the 2018 option. The company did not reveal the exact purchase price.

Pokrovske's assets include the Pokrovske colliery and the Svyato-Varvarinskaya enrichment factory, which are near Metinvest's coke plants in Ukraine.

In 2020, Pokrovske's mined raw coal totaled 6.2 million tonnes while its coking coal concentrate production was 3.2 Mt, an increase of 55% and 39%, respectively, from 2018 levels.

Metinvest said it intends to manage Pokrovske's debt portfolio. As of Dec. 31, 2020, Pokrovske had external debt of $535 million, including a $480 million restructured debt facility maturing in 2030.

In February, Metinvest reported a 54% year-over-year increase in full-year 2020 net profit to $526 million.