Ukraine’s Ferrexpo halts iron ore output over Black Sea shipping threats

Swiss mining company Ferrexpo has temporarily suspended iron ore production at its Ukrainian facilities, citing ongoing threats affecting export routes through the Black Sea and the need to preserve working capital. 

The company said the security situation in and around Ukrainian ports had significantly restricted maritime export logistics, prompting it to halt production at its mining and pelletising operations in Ukraine, Caliber.Az reports, citing foreign media.

“Continued threats in and around Ukrainian ports have significantly restricted export logistics routes in the Black Sea. As a result of this threat, and in order to preserve working capital, the company has decided to temporarily suspend iron ore production at its Ukrainian mining and pelletising operations,” Ferrexpo said in a statement published on the London Stock Exchange website.

The company added that the restart of production would depend, among other factors, on securing additional working capital.

Ferrexpo stopped exporting products via the Black Sea on July 28 due to the continued risks affecting maritime shipments.

The group operates the Poltava and Yeristovo mining and processing plants in Ukraine, producing iron ore pellets used in steelmaking through coke-free production technologies.

Ferrexpo has been listed on the London Stock Exchange since 2007. Its largest shareholder is Ukrainian businessman Konstantin Zhevago, who is involved in several criminal proceedings in Ukraine.

Ukrainian media have reported that Zhevago currently resides in France, which previously rejected a request to extradite him to Ukraine.

By Aghakazim Guliyev