Ferrexpo plc, a mining company with its main assets in Ukraine, produced 2,169,631 tons of pellets in January-June this year, which is 34.2% less than in January-June last year (3,297,441 tons).
According to the company’s press release on Monday, total production of commercial products (pellets and iron ore concentrate) in the first half of 2025 decreased by 9% compared to the first half of 2024, to 3 million 393,135 thousand tons. In particular, the output of marketable concentrate amounted to 1 million 223.504 thousand tons against 429.865 thousand tons, respectively. The company also produced 81,787 thousand tons of DR pellets (in the first half of 2024 – 162,645 thousand tons) and 2 million 87,844 thousand tons of premium pellets (a decrease of 33.4%).
The press release notes that from January to April 2025, the amount of VAT refunds denied amounted to $31 million. Due to the current suspension of VAT refunds and the associated decline in financial liquidity, the group was forced to reduce production from two to one pelletizing line and also to reduce the production of high-quality concentrate. As a result, total commercial production for the second quarter amounted to 1.3 million tons, down 40% from 2.1 million tons in the first quarter.
However, the group demonstrated flexibility and agility by continuing to benefit from strong demand for its concentrate from customers in China, which accounted for more than a third of its product mix in the first two quarters of 2025, the statement said.
Among other things, it has made efforts to reduce its costs in order to remain financially viable. This includes reducing working hours for employees, cutting purchases of goods and services, and suspending all non-essential capital expenditures, overhead costs, and corporate social responsibility expenses.
Commenting on the group’s performance, interim CEO Lucio Genovese noted that the strong momentum at the beginning of the year, which reflects, in particular, increased quarterly production since the full-scale invasion in February 2022, was significantly limited in the second quarter as the company began to feel the impact of tax authorities’ decisions to suspend VAT refunds. As a result, production fell to 1.3 million tons in Q2 2025.
“Despite the weaker iron ore pellet market, we were able to significantly change our production portfolio and take advantage of strong demand in China for our high-quality low-alumina iron ore concentrates. During the first six months of 2025, concentrate sales accounted for 36% of our production portfolio, three times more than in the same period a year ago. In a challenging operating and market environment for iron ore, it is encouraging that we have been able to be so flexible and take advantage of the demand for high-quality concentrates,” said the top manager.
At the same time, he pointed out that lower iron ore prices and reduced production had a negative impact on profitability. The situation was exacerbated by higher prices for raw materials such as gas and electricity. During the second quarter, the group worked hard to reduce its costs in order to remain financially viable.
“This includes reducing working hours or leave for approximately 37% of employees, reducing purchases of goods and services, and suspending all non-essential capital expenditures, CSR, and humanitarian expenditures. At the same time, every effort is being made and measures are being taken with the relevant authorities and government agencies in Ukraine and internationally to try to resolve the issue of the suspension of VAT refunds,” Genovese added.
As reported, Ferrexpo produced 1 million 347,749 thousand tons of pellets in Q1-2025, which is 26% lower than in January-March last year (1 million 813,973 thousand tons). At the same time, total production of commercial products (pellets and iron ore concentrate) in Q1 2025 increased by 3% compared to Q1 2024, to 2 million 125.467 thousand tons. In particular, the output of marketable concentrate amounted to 777,718 thousand tons, compared to 240,516 thousand tons in Q1-2024. The company also produced 81,879 thousand tons of DR pellets (not produced in Q1-2024), 1 million 105.049 thousand tons of premium-grade pellets (a decrease of 36%) and 160.913 thousand tons of other pellets (an increase of 95%).
In 2024, Ferrexpo increased its production of pellets by 58% compared to 2023, to 6 million 70.541 thousand tons from 3 million 845.325 thousand tons. In the fourth quarter of 2024, it produced 1 million 503.373 thousand tons of pellets, which is 18% higher than in the previous quarter (1 million 269.727 thousand tons).
At the same time, total production of marketable products (pellets and iron ore concentrate) in 2024 increased by 66% compared to 2023, to 6 million 889.879 thousand tons from 4 million 152.028 thousand tons. In particular, the output of marketable concentrate reached 819,338 thousand tons compared to 306,703 thousand tons in 2023. The company also produced 489,720 thousand tons of DR pellets, 4 million 984,990 thousand tons of premium pellets, and 595,831 thousand tons of other pellets.
In 2023, Ferrexpo produced 3.845 million tons of pellets, which is 36.5% less than in 2022.
Ferrexpo owns 100% of Yeristovsky GOK LLC, 99.9% of Bilanivsky GOK LLC, and 100% of Poltavsky GOK PJSC.
“Metinvest, Ukraine’s largest mining and metals holding, increased its total production of iron ore concentrate (IOC) by 63% year-on-year to 12.239 million tonnes in January-September this year, and pellets by 15% to 4.570 million tonnes, but reduced its total output of coking coal concentrate by 25% to 3.220 million tonnes.
According to the operating report of the parent company Metinvest B.V. on Monday, in March-July 2024, Ukraine experienced power supply restrictions due to Russian shelling and high demand for imported electricity. Since August, the situation has stabilized, but the unfavorable conditions on the iron ore market have led to a decline in production.
The Group’s mining and processing plants continued to operate at varying levels of capacity utilization, taking into account the availability of electricity, its cost, market prices for iron ore products and other factors to ensure efficient production. As a result, in Q3 2024, total iron ore concentrate production decreased by 17% quarter-on-quarter to 3.347 million tonnes; production of saleable iron ore products decreased by 15% to 3.231 million tonnes, including iron ore products by 16% to 1.854 million tonnes, and saleable pellets by 14% to 1.377 million tonnes.
Amid the unblocking of Ukrainian Black Sea ports from August 2023 and an increase in the order book for pellets, total iron ore production increased by 63% to 12.239 million tonnes in the first nine months of 2024 compared to the same period of the previous year. At the same time, the output of commercial iron ore products increased by 84% to 11.446 million tons, including a 3.1-fold increase in the production of commercial iron ore products to 6.876 million tons and 15% increase in commercial pellets to 4.570 million tons.
Since February 2024, Russian troops have concentrated their efforts on several fronts, including the Pokrovske direction, located near the Pokrovske coal group. Russian troops captured a number of towns and villages in the region and shifted the front line. Intense fighting and massive shelling continue in the area. Management is closely monitoring the situation and is taking all possible measures to minimize any potential negative consequences for the group, the statement said.
In the third quarter of 2024, the group’s production of coal concentrate increased by 14% quarter-on-quarter to 1.135 million tons. The main factor was a 17% increase in production volumes at Pokrovske Coal Group to 658 thousand tons. Despite the intensification of military operations in the Pokrovske area, production increased due to the commissioning of an additional longwall, which increased mining productivity and improved the quality characteristics of Ukrainian coking coal.
United Coal Company’s (USA) coal concentrate production increased by 9% quarter-on-quarter to 477 thousand tons due to increased production at some Affinity mines, mainly on the back of growing demand for coking coal.
For 9M2024, the Group’s coal concentrate production decreased by 25% year-on-year to 3.220 million tonnes, in particular due to a 23% decrease in production at Pokrovske Coal Group to 1.860 million tonnes, mainly as a result of optimization of mining operations due to changes in mining and geological conditions; at United Coal Company by 28% to 1.360 million tonnes due to the cessation of production at Carter Roag mines and a decrease in production at some Wellmore mines.
“Metinvest comprises mining and steel production facilities located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
“Metinvest, Ukraine’s largest mining and metals holding, increased its total production of iron ore concentrate (IOC) by 87% year-on-year to 8.892 million tonnes in January-June this year, and pellets by 25% to 3.193 million tonnes, but reduced its total output of coking coal concentrate by 31% to 2.085 million tonnes.
According to the operating report of the parent company Metinvest B.V. on Monday, the production of commercial iron ore products more than doubled to 8.021 million tons, and the production of commercial iron ore concentrate increased 3.4 times to 5.023 million tons, which was facilitated by the unblocking of Ukrainian Black Sea ports from August 2023 and an increase in the order book for coking coal pellets.
It is noted that due to limited electricity production in Ukraine due to Russian shelling since mid-March 2024 and high demand for imported electricity, its cost affects the workload and configuration of the group’s mining and processing plants.
At the same time, Metinvest distributes the workload of its mining and processing plants based on the availability of electricity, its cost, market prices for iron ore products and other factors to ensure efficient production.
As a result, in Q2 2024, total iron ore production decreased by 17% quarter-on-quarter to 4.033 million tonnes, while the output of commercial iron ore products decreased by 13% to 3.814 million tonnes, including the production of commercial iron ore pellets, which decreased by 22% to 2.205 million tonnes. At the same time, the production of commercial pellets remained almost at the level of the previous quarter at 1.609 million tons.
According to the report, the group’s coal concentrate production in 2Q2024 decreased by 8% quarter-on-quarter to 999 thousand tons.
It is noted that the main factor behind this was a 12% decline in production at Pokrovske Coal Group (Ukraine) to 562 thousand tons, among other things due to the planned redistribution of mining operations in view of the capacity of production sites.
United Coal Company’s (USA) production of coal concentrate remained almost at the level of the previous quarter – 437 thousand tons. It is noted that in 1H2024, the group’s coal concentrate production decreased by 31% mainly due to a 39% decrease in production at United Coal Company due to the suspension of production at Carter Roag mines and a decrease in production at some Wellmore mines. In addition, Pokrovske Coal Group’s coal concentrate production decreased by 25% mainly due to optimization of mining operations due to changes in mining and geological conditions.
“Metinvest comprises steel and mining companies located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
Ferrexpo plc, a mining company with major assets in Ukraine, and Salzgitter Flachstahl GmbH, a subsidiary of German steel company Salzgitter AG, have announced that they will strengthen their cooperation.
According to a stock exchange announcement, the companies signed a memorandum of understanding for the supply of direct reduced iron (DRI) pellets for the production of low-carbon steel.
It is specified that the memorandum on the use of pellets in SALCOS (Salzgitter Low CO2-Steelmaking), a production facility of Salzgitter, provides for the implementation of a decarbonization program, joint development of strategies for the use of raw materials within environmentally friendly supply chains.
“We have agreed on the terms of our cooperation for the future. Ferrexpo’s DR pellets can significantly reduce emissions in steel production under the SALCOS program,” explained Jaroslawa Blonska, Acting Marketing Director at Ferrexpo.
Gerd Baresh, Technical Director of Salzgitter Flachstahl GmbH, expressed his hope for intensified cooperation in the context of the SALCOS program: “This agreement will help us reduce carbon emissions in our supply chains and stimulate the production of environmentally friendly steel.”
The SALCOS program is expected to be technically completed by 2033.
Ferrexpo is an iron ore company with assets in Ukraine. Ferrexpo owns 100% of shares in Poltava Mining, 100% of shares in Yeristovo Mining and 99.9% of shares in Bilanivsky Mining.
According to the results of work in January-September of this year, “Metinvest” reduced the total production of iron ore concentrate (IRC) by 23% compared to the same period last year – to 7.513 million tons, increased the production of pellets by 48% – to 3.989 million tons, the total output of coke of coal concentrate increased by 17% to 4.318 million tons.
According to a press release from parent company Metinvest B.V. on the results of operations for the third quarter and nine months of 2023 on Wednesday, in the third quarter of 2023 the output of the total SAM increased by 13% compared to the previous quarter – to 2.766 million tons – due to increased production at all three GZK (Northern GZK, InGZK and TsGZK).
The production of commercial iron ore products increased by 3% – up to 2.180 million tons, while almost the entire volume of these products was produced with a high iron content. Due to the change in the order portfolio in favor of pellets, their production increased by 7% – to 1.434 million tons, while the production of commercial concentrate decreased by 5% – to 746 thousand tons.
In the nine months of 2023, the production of total air defense systems decreased by 23% due to the start of full-scale military operations on the territory of Ukraine at the end of February 2022. As a result, the volume of production of commercial iron ore products decreased by 12% – to 6.220 million tons – due to a decrease in the production of commercial concentrate by 49%, to 2.231 million tons. At the same time, the increase in the production of commodity pellets by 48% occurred due to the reorientation of the order portfolio. Almost the entire volume of marketable iron ore products was produced with a high iron content.
In the third quarter of 2023, the group’s coal concentrate production decreased by 19% compared to the previous quarter – to 1.275 million tons. The main factor was a 36% decrease in production volumes at United Coal Company (USA) mines – to 443,000 tons – due to the cessation of production at Carter Roag mines and a decrease in production at some Wellmore mines. The production of coal concentrate in the Pokrovsky Coal Group (Ukraine) decreased by 7% – to 832 thousand tons – due to a decrease in production due to the deterioration of geological conditions.
In the first nine months of 2023, the group’s coal concentrate output increased by 17%, mainly due to an increase in production in the Pokrovsky Coal Group – by 33%, to 2.426 million tons, as well as an improvement in the quality characteristics of Ukrainian coking coal.
Previously, the financial director of the group, Yulia Dankova, explained that as a result of the war, “Metinvest” lost control over two large plants in Mariupol and suspended production in Avdiivka. These and other challenges that the company continues to overcome have forced the business to restructure in order to survive.
So, first of all, the company provided the opportunity for its foreign enterprises to operate separately, since the vertically integrated structure was broken. Before the war, the Mariupol factories supplied semi-finished products to their rolling mills abroad, and coal concentrate went to Ukraine from the USA. Currently, the assets of “Metinvest” in Italy, Great Britain and the USA operate as independent enterprises. Coal mines in the US have reoriented product sales to domestic and export markets, and rolling mills are buying semi-finished products on the open market.
She also stated that now the group’s industrial enterprises are loaded at 65-75% capacity, and GZK – at 35-40%.
As reported, “Metinvest” according to the results of January-March of this year reduced the total production of iron ore concentrate (IRC) by 62% compared to the same period last year – to 2.306 million tons, pellets by 6% – to 1.214 million tons, the total output of coking coal of concentrate increased by 14% to 1.461 million tons. At the same time, the output of total iron ore concentrate more than doubled compared to the previous quarter – up to 2.306 million tons.
In the first half of 2023, the group reduced the production of SAMs by 46% compared to the same period last year – to 4.746 million tons, increased pellets by 37% – to 2.555 million tons, the total output of coking coal concentrate increased by 25%, to 3.043 million tons. The output of marketable iron ore products decreased by 35%, to 4.041 million tons.
According to the results of 2022, “Metinvest” reduced the production of total iron ore concentrate by 66% compared to the previous year – to 10.712 million tons, marketable iron ore products by 55% – to 7.903 million tons, in particular the volume of marketable concentrate – by 60%, to 4.718 million tons , and the volume of commercial pellets – by 45%, up to 3.185 million tons. In 2022, the group’s coal concentrate production decreased by 11% to 4.959 million tons.
“Metinvest” consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA.
The main shareholders of “Metinvest” are “SCM” group (71.24%) and “Smart-holding” (23.76%), which jointly manage the company.
“Metinvest Holding” LLC is the managing company of the “Metinvest” group.
Mining company Ferrexpo with assets in Ukraine in January-June this year due to the blockage of sea ports by Russia was able to supply pellets only to European countries and Turkey.
According to the semi-annual report of the company on Wednesday, Ferrexpo in the first half of the year-2023 all 100% of the realized products supplied to Europe, including Turkey, while in January-June-2022 this share was 92%, in the first half of the year-2022 – 79%.
Earlier it was noted that in H1-2022 the company increased the share of sales to Europe, including Turkey to 79% (in IH-2021 – 60%), Northeast Asia – to 5% (8%). Deliveries to the Middle East and North Africa were absent at that period (2%), as well as to North America (2%). Meanwhile, sales to Southeast Asia (SEA), including China, fell to 16% from 29%.
According to the report, the group was mainly limited to exports to Europe either by rail or inland waterways via the Danube River in the current year. It produced 1.967 million tons of pellets, operating one to two of four pelletizing lines, each capable of producing about 3 to 3.5 million tons of pellets per year, depending on the product types produced.
As at the end of July, the group operates one pelletizing line to reduce existing product inventories.
C1 production cost in H1-2023 was $71/tonne, down from H1-2022 ($85/tonne) due to the hryvnia devaluation in H2-2022 and lower prices for some consumables and the positive effect of energy savings. At the same time, iron ore prices in H1-2023 on the global market decreased by 5%, the outlook for the third quarter is slightly worse due to weak demand in Asia and increased iron ore supplies from Brazil and Australia.
Total selling and distribution costs in H1 2023 were $74 million (H1-22 – $147 million), mainly due to lower shipping volumes in the period due to the closure of Ukraine’s Black Sea ports in February 2022 and higher alternative freight costs that followed access to European customers. C3 freight rates declined 26% year-on-year to average $20/tonne in 1H 2023 as a result of lower global energy prices and lack of demand from Brazilian miners.
It is also stated that previously the group’s maritime logistics routes represented the cheapest and most efficient way to deliver products to customers. However, due to the Russian invasion of Ukraine, the group has had to adapt and establish new logistics corridors and relationships with logistics service providers and port operators. These routes rely heavily on rail, where capacity is limited and demand is high, including from businesses and industries, and transportation by barge is also limited and costly.
“The Group continues to explore its logistics options and has made progress in reducing transportation time and improving efficiency where possible,” the report said.
It also reminds that rail tariffs in July-2022 increased by 70% for 20 types of cargo, even when the group uses its own railcars.
During the first six months of 2023, the average monthly iron ore price remained in the range of $100 – $200/tonne, royalties for iron ore mining are charged to the group at a rate of 5% in this period.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of Poltava GOK PJSC, 100% of Yeristovskiy GOK LLC and 99.9% of Belanovskiy GOK LLC.
