Ferrexpo Plc
Ferrexpo Plc
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Russia’s continuing military attacks in Ukraine have forced Ferrexpo to reduce production of iron ore pellets from its operations in the beleaguered country.
The world's third largest exporter of high-grade iron ore pellets produced 4.4Mt to end-May, just 8% below the same period of 2021.
Since the forced closure of Ukraine’s Black Sea ports, Ferrexpo has diverted its sales to European markets to the country’s diverse railway network and its own barging operations.
(ESG GOVERNANCE)
There’s been no fanfare for iron ore pellet giant Ferrexpo in announcing strong FY2021 financial results for its Ukrainian operations, pointing out they all relate from a “very different time” – prior to the brutal Russian military invasion.
Iron ore pellet giant Ferrexpo has posted significant increases in revenue, cashflow and earnings for the year to Dec 2021, but has to point out the full year financial results it has now released reflect the period prior to Russia’s military invasion of Ukraine.
While its operations in central Ukraine have continued despite the military action, the company has deferred a decision on a dividend because of its uncertain outlook.
World No3 high-grade iron ore pellets supplier Ferrexpo has stepped up its support for the beleaguered population of Ukraine by increasing its Ferrexpo Humanitarian Fund to $US12.5M.
Ferrexpo, one of the largest employers in central Ukraine, says the additional $5M to the fund it established in March will assist communities and refugees with power and food supplies, medical and logistics.
The Russian invasion of Ukraine has seen Swiss headquartered Ukraine miner/processor Ferrexpo’s total Mar 2022 qtr (Q1 22) iron ore pellet production plunge to 2.7Mt, 11% below the previous quarter (Q4 21) due to operational and logistical constraints.
The group's production continues to comprise entirely of high grade forms of iron ore, those with an iron ore grade of 65% Fe or above. Q1 22 sales were 2.6Mt, with the company scaling its production activities to meet accessible pellet demand.
Ukraine-focused iron ore miner and processor Ferrexpo has responded to Russia’s military invasion by building a $US7.5M fund to support communities close to its mines and facilities and elsewhere in the country.
The world's No3 exporter of high grade iron ore pellets says the fund will coordinate food packages, medical supplies and provide meals to local residents.
Ferrexpo established the humanitarian fund on March 7 with an initial $1.5M, but says it is now aware of further projects and initiatives.
Repercussions of Russia’s military bastardry halt Ukraine mines while companies across the border fear becoming the inadvertent victims of global sanctions against the aggressor.
The local, regional and global crisis triggered by Russia’s violent military attack on its smaller neighbour Ukraine, exacerbated by the risk of tit-for-tat sanctions, threatens severe repercussions for world economies still struggling to recover from the depredations of the COVID-19 pandemic.
Ukraine iron ore miner and processor Ferrexpo has issued force majeure notices to a number of customers due to the suspension of port operations at Pivdennyi in the country’s southwest following the Russian military intrusion.
Ferrexpo, the world’s third largest exporter of high-grade iron ore pellets to the global steel industry, says the shutdown ordered by port authorities will prevent near-term deliveries to customers via oceangoing vessels.
The successful completion of Ferrexpo’s pelletiser upgrade work during the Mar 2021 qtr (Q1 21) has seen total Q2 21 iron ore pellet production, comprising pellets and concentrate, jump 6% to 2.8Mt.
A final pelletiser line upgrade for the world’s 3rd largest pellet exporter is planned for Q3 21 increasing the group’s overall pelletiser capacity by 500,000t-1Mtpa on completion.
Q2 21 direct reduction pellets (67% Fe) jumped 70% to 85,000t, premium pellets (65% Fe) 4% to 2.76Mt and commercial concentrate production (67% Fe) rose 31% to 85,000t.