In June of this year, Ukraine increased its manganese ore exports by 36.6% compared to the previous month—from 1,720 thousand metric tons to 2,350 thousand metric tons.
According to statistics released by the State Customs Service (SCS), a total of 21,946 thousand metric tons of manganese ore were exported during the first six months of this year, whereas exports during the same period last year amounted to 2,218 thousand metric tons, valued at $366 thousand.
At the same time, Ukraine reduced its manganese ore exports in May of this year by a factor of 3.1 compared to April—to 1,720 thousand metric tons from 5,319 thousand metric tons; in April, exports increased by a factor of 2.8 compared to March—to 5,319 thousand metric tons from 1,932 thousand metric tons; in March, exports fell by a factor of 3.1 compared to the previous month—to 1,932 thousand metric tons from 6,072 thousand metric tons—and by a factor of 2.4 compared to January, when 4,553 thousand metric tons were exported.
In monetary terms, $3.729 million worth of this raw material was exported in January–June (for the first six months of 2025 – $366 thousand). Exports were shipped to Slovakia (74.83% of shipments in monetary terms) and Georgia (25.17%).
In January–June of this year, Ukraine imported 5 metric tons of manganese ore from China worth $3,000, whereas there were no imports last year.
As previously reported, Ukraine reduced its manganese ore exports by 50.4% in 2025 compared to the same period last year—to 22,281 metric tons—but ramped up shipments in August–December. While shipments totaled 2,977 thousand metric tons over the first seven months of 2025, exports more than doubled in August, when 5,037 thousand metric tons were shipped; in September, they amounted to 1,725 thousand metric tons; in October, 3,993 thousand metric tons; in November—3,860 thousand metric tons, and in December—4,689 thousand metric tons.
In monetary terms, exports for the entire year of 2025 fell by 45.2% compared to 2024—to $3,599 million. The bulk of exports went to Slovakia (99.22% of shipments in monetary terms) and Poland (0.78%). Over the course of the year, the country imported 37,006 thousand metric tons from Ghana, valued at $5.546 million. All shipments took place in November. In 2024, 84,293 thousand metric tons of ore were imported, valued at $18.302 million.
The Pokrovsk Mining and Processing Plant (PGZK, formerly the Ordzhonikidze Mining and Processing Plant) and the Marganetsk Mining and Processing Plant (MGZK, both located in Dnipropetrovsk Oblast), which are part of the Privat Group, ceased the extraction and processing of raw manganese ore in late October–early November 2023, while the NZF and ZZF plants halted ferroalloy smelting. In the summer of 2024, the ferroalloy plants resumed production.
PGZK and MGZK did not produce any output in 2024, whereas in 2023, PGZK produced 160.31 thousand metric tons of manganese concentrate, and MGZK was idle.
In 2025, PGZK produced 63.9 thousand metric tons of manganese concentrate worth 342.138 million UAH and sold 25.4 thousand metric tons for 216.309 million UAH. In 2026, the plant plans to increase manganese concentrate production by a factor of 3.44 compared to the previous year—to 220 thousand metric tons.
In Ukraine, manganese ore is mined and processed by the Pokrovsk and Marganets Mining and Processing Plants.
The consumers of manganese ore are ferroalloy enterprises.
EXPORT, MANGANESE, MINING AND PROCESSING PLANT, ORE, SLOVAKIA
Ferrexpo plc, a mining and ore company with its main assets in Ukraine, produced 1,385,139 metric tons of pellets in January–June of this year, which is 36% lower than in January–June of last year (2,169,631 metric tons), but in the second quarter, it increased production of this product by 64% compared to the first quarter—to 860,213 thousand metric tons from 524,926 thousand metric tons.
According to the company’s press release on Wednesday, total production of marketable products (pellet and iron ore concentrate) for the first half of 2026 fell by 54% compared to the first half of 2025—to 1,556,160 thousand metric tons. In particular, production of premium-grade Fe67% concentrate amounted to 171,021 thousand metric tons, compared to 1,223,504 thousand metric tons (a decrease of 86%). The company also produced 1,221,968 thousand metric tons of premium-grade pellets (a 41% decrease) and 163,171 thousand metric tons of DR pellets (compared to 81,787 thousand metric tons produced in the first half of 2025).
The press release notes that the group continues to operate under significant constraints caused, in particular, by serious operational and financial risks related to the war in Ukraine. These factors include the mobilization of a significant portion of the workforce into the Armed Forces of Ukraine, as well as disruptions and restrictions in logistics, as a result of which only one iron ore pellet production line is currently in operation.
The group continues to focus on cost management and operational activities to preserve working capital amid significant constraints. At the same time, the Group continues to optimize its product mix (the ratio of pellet production to concentrate production) and manage the allocation of shipments among customers. In addition, operating expenses have been reduced across all business lines over an extended period, a situation that will require a solution in the future.
As a result of these measures, as of June 30, 2026, the Group’s available cash balance stood at approximately $27 million (excluding funds held at MBaer Merchant Bank (MBaer), whose banking license was revoked in February 2026). As of June 30, 2026, the Group’s net cash position (excluding lease obligations) was approximately $21 million (for comparison: as of March 31, 2026, this figure was approximately $25 million; as of December 31, 2025, it was $47 million; as of June 30, 2025, it was $50 million; and as of December 31, 2024, it was $101 million).
Given the measures taken by the Group, as well as current production volumes, actual and projected energy prices for the next quarter, and an optimized sales structure, the Group forecasts that its available net cash (net of lease obligations and funds locked up in MBaer) will be sufficient to continue operations under the current challenging conditions until the beginning of the fourth quarter of 2026. This forecast depends on the volatility of iron ore prices and operating expenses (particularly energy costs) and is based on the assumption that there will be no material changes in the Group’s operating conditions (including energy supply) Furthermore, the arbitration administrator appointed as part of the Poltava Mining and Processing Plant’s bankruptcy proceedings will not impose restrictive measures, and there will be no final, non-appealable adverse decisions in the various judicial and administrative proceedings to which the Group is currently a party.
The Group remains in a precarious financial position and is implementing cost-cutting measures across all areas of its operations, particularly with regard to operating and capital expenditures. In addition, significant operating expenditures have been deferred, particularly those related to the optimization of mining operations, repairs, and maintenance of processing and pellet production facilities, as well as mining equipment.
Against this backdrop, the group is maintaining its workforce at 6,299 employees to retain the skilled professionals needed to manage flexible production volumes in response to market demand. This figure currently includes 804 employees serving in the Armed Forces of Ukraine.
The press release states that the Group’s VAT refunds have been suspended since March 2025. As a result of this suspension, as of June 30, 2026, VAT receivables in Ukraine amounted to $90.4 million (net of related provisions); (for comparison: as of March 31, 2026, this figure stood at $90.3 million). Of this amount, as of the date of this announcement, $87.5 million had been claimed for refunds covering the period from January 2025 through June 2026, with the Ukrainian tax authorities having denied refunds for approximately $80.8 million (relating to the period from January 2025 through April 2026).
The company is in negotiations with Ukrainian authorities to find a long-term solution to the issue of obtaining VAT refunds. Although the company is striving to reach an agreement, given the complexity of the situation, the possibility of reaching such an agreement and the timeline for its implementation remain uncertain, according to the press release.
The company also provides an update on the status of its legal proceedings. Specifically, regarding the long-standing legal dispute between “Maxi Capital Group” Financial Company LLC (Maxi Capital) and PGZK regarding disputed guarantee agreements and a claim in the amount of 4.727 billion hryvnia (approximately $105.4 million as of June 30, 2026), the group reports that the main claim is currently being considered by the Supreme Court of Ukraine. On May 1, 2026, the court expanded the panel to 17 judges. The next court hearing in this case is scheduled for October 12, 2026.
Proceedings in the PGZK bankruptcy case: Following the local court of first instance’s decision on February 24, 2026, to open bankruptcy proceedings based on Maxi Capital’s petition, PGZK filed an appeal against that decision. Following the official recusal of the original three-judge panel on April 30, 2026, a new panel was appointed. During the hearing on June 2, 2026, the appellate court heard the parties’ arguments and scheduled the next hearing for July 27, 2026.
The company has updated information regarding its financing options. The Board of Directors continues to believe that raising equity capital is currently the most viable solution within the required timeframe. This capital raise will likely be structured as a conditional placement of new shares among certain existing and new institutional investors with the aim of raising at least $100 million. These funds are necessary to maintain the Group’s working capital levels, meet its short-term operational needs, increase production volumes, and carry out previously deferred work on deposit development (overburden removal) and capital expenditures while operating at reduced capacity over the next 18 months. The Group is actively working on a series of measures necessary to begin implementing the planned capital raise.
The Company continues negotiations with representatives of its largest shareholder—Fevamotinico S.a.r.l.—regarding its participation in the equity financing. At this stage, there is no certainty that the Group will be able to successfully carry out the planned fundraising. If the issues regarding the delay in VAT refunds and financing problems are not resolved in a timely manner, this could lead to serious negative consequences for the Group. In particular, the Company or Group entities may be forced to file for insolvency in the relevant jurisdictions, and shareholders may lose all or a significant portion of their investments.
Regarding the delay in the publication of the audited financial statements for 2025, the listing, and trading of the Company’s shares: Given that the preparation of the financial statements for the year ended December 31, 2025, under the going concern assumption, depends on the successful completion of the planned capital raising, the Company has not yet been able to publish its audited financial results for that period. The results for the 2025 fiscal year are expected to be released concurrently with the launch of the planned capital raising process.
Following the release of the results for the 2025 fiscal year, the company will apply to the UK Financial Conduct Authority (FCA) to lift the suspension of its listing, thereby allowing trading in the company’s shares to resume.
Commenting on the group’s performance, interim acting chairman Lucio Genovese stated, “We are very pleased that we were able to restore stable production during this period, despite the numerous operational and logistical challenges we faced.”
“We took the opportunity to improve our sales mix through exports of direct-recovery pellets (DR pellets/FDP) and continue to cut costs across the entire company to preserve our available working capital, which is being depleted due to the lack of VAT refunds starting in March 2025. We are continuing our efforts to raise capital, which is the most viable solution for addressing the working capital shortfall,” Genovese noted.
As previously reported, Ferrexpo produced 3,221,461 metric tons of pellets in 2025, which is 47% less than in the previous year (6,070,541 metric tons). At the same time, total production of marketable products (pellets and iron ore concentrate) for 2025 decreased by 9% to 6,141,759 thousand metric tons. Specifically, marketable concentrate output amounted to 2,920,298 thousand metric tons, compared to 709,803 thousand metric tons, respectively. The company also produced 81,787 thousand metric tons of DR pellets (compared to 489,720 thousand metric tons in 2024) and 3,139,674 thousand metric tons of premium-grade pellets (a 44% decrease).
In 2024, Ferrexpo increased pellet production by 58% compared to 2023—to 6,070,541 metric tons from 3,845,325 metric tons. In 2023, the company produced 3.845 million metric tons of pellets, which is 36.5% less than in 2022.
Ferrexpo owns a 100% stake in Yeristivsky Mining and Processing Plant LLC, a 99.9% stake in Bilanivsky Mining and Processing Plant LLC, and 100% of the shares in Poltava Mining and Processing Plant PJSC.
FERREXPO, MINING AND PROCESSING PLANT, PELLETS, PRODUCTION, VAT
PJSC “Novoselivsky Mining and Processing Plant” (NGZK, Kharkiv Oblast) will allocate UAH 2.125 million from its 2025 net profit for dividend payments.
According to the company’s report in the NSSMC’s disclosure system, this decision was adopted by the company’s annual general meeting of shareholders, held remotely on April 28 of this year.
“It was decided to allocate a portion of the 2025 net profit in the amount of UAH 2.125 million to pay dividends to the company’s shareholders in cash. The dividend per share amounts to UAH 0.05 (before deduction of taxes to be withheld and paid in accordance with the law),” the statement reads.
It is specified that on June 2, 2026, by a decision of the company’s supervisory board, it was established that the payment of dividends based on the results of 2025 shall be carried out in accordance with the decision of the general meeting of shareholders, which was held remotely, by paying the full amount of dividends in full through the Ukrainian depository system in accordance with the procedure established by law to shareholders included in the list of persons entitled to receive dividends, compiled as of June 17, 2026, during the period from June 23 to October 28, 2026.
According to the company’s interim report, available to the Interfax-Ukraine agency, NGZK incurred a net loss of UAH 4.441 million in January–March of this year, whereas in the same period last year there was a net profit of UAH 3.677 million; revenue from ordinary activities for this period amounted to UAH 36.067 million (UAH 47.396 million). Retained earnings as of the end of March 2026 stood at UAH 99.851 million.
According to the annual report, NGZK increased its net profit to UAH 20.170 million in 2025 from UAH 18.938 million in 2024. At the same time, revenue from ordinary activities for this period increased compared to 2024 to UAH 190.631 million from UAH 168.553 million.
In 2024, NGZK increased its net profit by 6.1% compared to 2023—to UAH 18.938 million, while net revenue grew by 11.6% to UAH 168.553 million.
The Novoselivsky Mining and Processing Plant was established in 2000. It is engaged in the extraction of sand, gravel, and clay.
According to the State Register of Enterprises for the first quarter of 2026, Silica Holding LLC (Ukraine) owns 94.8205% of the company.
The authorized capital is UAH 21.25 million.
The Central, Ingulets, and Northern mining and processing plants (M&P plants) of the Metinvest mining and metallurgical group, transformed into the United Mining and Processing Plant, paid UAH 5.2 billion in taxes in 2025, which is 8.8% less than in 2024 (UAH 5.7 billion).
According to the company’s press release on Thursday, the main source of budget revenue in 2025 was subsoil use fees, which amounted to UAH 2.4 billion.
A significant portion of the United Mining and Processing Plant’s contributions came from a single social contribution, which amounted to almost UAH 756 million. Personal income tax amounted to UAH 646 million for the year. Environmental tax and land fees also contributed to the state and local treasuries.
“We continue to be a pillar of Ukraine’s economy despite all the challenges facing the mining industry. Today, Metinvest’s mining and processing plants remain among the largest taxpayers. These funds help to strengthen the country’s defense capabilities and support the social sector, which is extremely important during armed aggression. We are changing our approaches, learning to work in extremely difficult conditions, and consistently investing all our efforts in a peaceful future for Ukraine,” said Igor Tonev, CEO of OGZK.
As reported, the group’s mining companies increased their tax payments 2.6 times to UAH 5.7 billion in 2024.
Earlier, Metinvest CFO Yulia Dankova, explaining the group’s financial performance, noted that the dynamics were not positive mainly due to the shutdown of production facilities, in particular in Pokrovsk. The Ingulets Mining and Processing Plant is also idle.
Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in the Donetsk, Luhansk, Zaporizhzhia, and Dnipropetrovsk regions – as well as in the European Union, the United Kingdom, and the United States.
The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the managing company of the Metinvest Group.
PrJSC Poltava Mining and Processing Plant (Poltava GOK, Komsomolsk, Poltava region), the main asset of Ferrexpo Group, has launched a new technological complex for production of finished goods – Section No. 9 of the concentrating plant, the total cost of the project exceeded $100 million.
According to Ferrexpo’s expectations, the project will make it possible to produce an additional 2 million tonnes of finished products, which will increase the company’s sales volumes by about UAH 2 billion per year, starting from July 1 this year. The implementation of this project will increase the plant’s installed capacity to more than 15 million tonnes of concentrate per year.
Section No. 9 is a modern complex of the production chain, which includes additional crushing and dressing areas, a new electrical substation, a system for transferring prepared raw materials and finished products, as well as additional conveyor lines, the press release says. The main equipment manufacturer for it is Metso Outotec. Other leading world companies also participated in the project implementation process and Ukrainian contractors from different regions were involved. Construction took over four years.
At the same time, the company indicates that this investment has already provided payments to the state budget and budgets of other levels in the amount of about UAH 400 million and will further bring up to UAH 300 million of such payments annually.
As reported, Ferrexpo plc in January-June 2020 increased the processing of iron ore concentrate – raw materials for pellets – by 6.3% compared to the same period in 2019, to 7.002 million tonnes.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of shares of Poltava GOK, 100% of Yeristovo GOK and 99.9% of Belanovo GOK.
