By KYIV. Dec 21 (Interfax-Ukraine) – Mining company Ferrexpo with assets in Ukraine, after the suspension of production since the beginning of October at its enterprises in Poltava region due to restrictions on the supply of electricity due to shelling of the energy infrastructure by Russian invaders, resumes the operation of one line for the production of pellets.
"Subsequent to the suspension of its operations in October 2022, the group is now receiving sufficient levels of power to bring one pelletiser line back into operation. This will allow the group, together with its stockpiled material, to meet the requirements of existing customer contracts," the company said in a stock exchange report on Wednesday.
As a result of interruptions, and continued instability, within the state-owned electricity network that have been experienced in the fourth quarter of 2022, approximately 0.3 million tonnes of pellets have been produced to date in 4Q 2022. Total pellet production for 2022 is therefore expected to be approximately 5.9-6.0 million tonnes.
"Despite interruptions to the Group’s production, shipments to customers during 4Q 2022 have continued at a run rate of approximately 250,000 tonnes per month," the group said in the press release.
As reported, in January-September 2022, pellet production amounted to 5.637 million tonnes, which is 31% less than in the same period last year.
Ferrexpo increased its total pellet production by 0.02% in 2021 compared to 2020, to 11.220 million tonnes. The company also produced 234,000 tonnes of merchandise concentrate with 67% iron content in 2021 (an increase of 28%).
Four lines for the production of pellets have been installed at Poltava Mining.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of Yeristovo Mining LLC and 99.9% of Belanovo Mining LLC. Prior to the court decision in September 2022, Ferrexpo also owned 100% of the shares of PJSC Poltava Mining.
