In 2024, Ferrexpo, a mining company with assets in Ukraine, increased its total sales of iron ore products by 64% year-on-year to 6.8 million tons, and by 26% to Europe, to 5.3 million tons.
According to the company’s annual report, sales grew mainly due to the reopening of Ukrainian Black Sea ports, which enabled the group to increase sales to customers in the Middle East and Asia using larger vessels, as well as to switch some sales to European customers from more expensive rail and barges to lower-cost sea routes.
It is also noted that last year, the company’s relations with premium European customers deepened with the signing of several memorandums of understanding to explore the sale of DR pellets (direct reduced iron), improve the quality of pellets and study the decarbonization of logistics routes. Memorandums of understanding were also signed with customers in Asia and MENA.
In 2025, the company intends to continue exporting its products from Ukrainian Black Sea ports as long as it is safe and economically viable, meaning that while Europe remains the main regional market, the group will also continue to sell to China and other Asian countries, as well as to its growing customer base in MENA.
According to the report, despite numerous logistical challenges, including the transportation of goods in the Odesa region, the company managed to ensure a stable transportation process during 2024. 84% of all domestic rail transportation was carried out by the group’s own railcar fleet, and 16% was carried out by third-party operators.
According to Viktor Lotous, Chairman of the Board of Poltava Mining and Head of Ferrexpo’s operations in Ukraine, our own repair facilities played an important role in ensuring uninterrupted transportation. The company’s existing facilities fully cover the needs for maintenance, repair and re-equipment of railcars, which reduces dependence on third-party contractors and ensures a high level of rolling stock availability.
An important factor that may affect future costs is the initiative of UZ to index tariffs, which is likely to increase transportation costs. Ferrexpo is closely analyzing the potential impact of this decision, considering ways to minimize costs, Lotous emphasized in the report.
He also informed that mining operations at Bilanivsky GOK were suspended due to the expiration of the license on December 20, 2024, but due to the extension of martial law in Ukraine, the validity of the Special Permit No. 3572 for Bilanivsky deposit was automatically extended until the end of martial law (May 9, 2025). It is assumed that another six months will be available to apply for an extension.
According to him, in early 2024, the reserves estimate of the Belanivske field was updated, and the results were approved by the State Commission on Mineral Resources. According to the results of the license revaluation, the area of the Belanivske deposit was reduced from 989 to 716 hectares, the area of the Belanivske contour of the deposit was reduced, poor ores were written off, and the balance sheet mineral reserves were reduced from 1706 million tons to 614 million tons. In February 2025, the company received an updated special permit No. 3572 for the Belanivske deposit.
The company continues to cooperate with government agencies to extend the license for the Belanivske field due to the extension of martial law and amendments to the Subsoil Code of Ukraine to ensure the possibility of extending the special permit.
The CEO also said that programs to increase ore production and decarbonization remain long-term goals. The initial first wave program to increase production capacity by 3 million tons per year is currently under review.
“Desktop work, including optimization studies, is ongoing. However, wherever possible, investments have been postponed. Nevertheless, despite the ongoing war, various capital expenditure projects are aimed at improving product quality and efficiency. For example, the company has introduced a pelletizing technology at the pelletizing plant to strengthen finished pellets, while increasing productivity and reducing iron losses to save costs and reduce emissions,” Lotus stated.
As reported earlier, Ferrexpo lost a case in the Supreme Court to reinstate one of its licenses for exploration of the Galeshchyna (Kremenchuk) ferruginous quartzite deposit after Bilanivsky GOK was sanctioned.
Ferrexpo is an iron ore company with assets in Ukraine. Ferrexpo owns 100% of Poltava Mining, 100% of Yeristovo Mining and 99.9% of Bilanivsky GOK.
