British-based Ferrexpo plc, which controls in Ukraine, in particular, Poltava and Yeristovo mining and processing plants, in January-September 2021 increased total production of pellets by 0.3% compared to the same period in 2020, to 8.158 million tonnes.
According to a press release from the company on Wednesday, total production, including pellets and salable concentrate, rose 3% to 8.393 million tonnes over the period.
At the same time, total production of pellets with 65% iron content amounted to 7.829 million tonnes (a decrease of 0.3%). Pellets with 62% iron content were not produced. Production of direct reduction (DR) pellets with 67% iron content amounted to 330,000 tonnes (up by 76%).
Over the nine months of 2021, the company also produced 234,000 tonnes of salable concentrate with 67% iron content, while in 2020 it did not produce salable concentrate.
In the third quarter of 2021, total pellet production fell 9% quarter on quarter (qoq), but increased 2% versus Q3 2020, to 2.596 million tonnes. In particular, 2.401 million tonnes of pellets with 65% iron content were produced (a decrease by 13% versus the second quarter of 2021 and by 5% versus the third quarter of last year), no pellets with 62% grade were produced, production of DR pellets with 67% iron content amounted to 195,000 tonnes (an increase of 130% compared to the previous quarter).
The company also produced 85,000 tonnes of salable concentrate with 67% iron content in the third quarter of 2021 (an increase of 0.2% compared to the second quarter).
Total production, including production of pellets and commercial concentrate, in the third quarter of this year decreased by 9% compared to the second quarter of 2021, but increased by 6% compared to the third quarter of 2020, to 2.680 million tonnes.
The press release explains that the 2% increase in iron ore pellet output in Q3 2021 versus Q3 2020 reflects strong production performance following pelletiser upgrade work completed in previous quarters. Production volumes are 9% lower on a quarter on quarter basis as a result of pelletiser upgrade work completed during the quarter, and planned pelletiser maintenance in September 2021.
In addition, upgrade work on the group’s fourth pelletiser line completed during September 2021.
Production of iron ore concentrate with a high iron content (65% and above) in the third quarter was in line with the previous quarter.
In addition, it clarifies that the proportion of direct reduction pellets with higher iron content (67% Fe) increased to 8% of total pellet production during the third quarter from 3% in the previous quarter, reflecting the group’s continuing expansion into this market.
In turn, continued production of commercial high grade concentrate (67% Fe) at 85,000 tonnes in the third quarter reflects the group’s recent investment in in its concentrate stockyard project.
Interim Group Chief Executive Officer Jim North pointed to the group’s continued progress towards improving product quality and output following the completion of the pelletizer upgrade.
“Through continued investment in the group’s concentrator and pelletiser facilities, we are creating a platform for future growth in product volumes, whilst simultaneously increasing the overall grade of our production,” North is cited in the press release.
