Mining giant Ferrexpo suspends operations in Ukraine: what is known
21 January 10:57
One of Ukraine’s key mining companies, Ferrexpo, has announced a temporary suspension of operations due to unstable power supply caused by massive Russian strikes on the country’s power grid. The company announced this on its official website, according to "Komersant Ukrainian".
The company noted that there had been new attacks on power generation and transmission facilities in Ukraine, which had again affected the supply of electricity to Ferrexpo’s operating units.
“Until the electricity supply is guaranteed on a stable basis and in the necessary volumes, a decision has been made to temporarily suspend operations and transfer some employees to idle mode,” Ferrexpo said.
There have been no reports of employee deaths or injuries, and no damage to Ferrexpo’s production assets has been recorded.
Further updates will be provided as appropriate.
What Ferrexpo produces and where its assets are located
The company specializes in the production and export of iron ore pellets and concentrate. Its key production facilities are concentrated in Ukraine, primarily in the Poltava region:
- Poltava Mining and Processing Plant
- Yeristovsky Mining and Processing Plant
- Bilanivsky Mining and Processing Plant
These enterprises are most dependent on uninterrupted power supply, without which the full operation of mining and processing plants is impossible.
Decline in production and logistics problems
In 2025, Ferrexpo’s total production volume decreased by 9% to 6.1 million tons. The worst figures were recorded in the fourth quarter, when intensive attacks on energy infrastructure began.
In addition to the electricity shortage, the company’s results were affected by:
- logistics disruptions;
- restrictions on exports via the Black Sea;
- forced switch to rail transport, which led to increased costs and reduced transport efficiency.
Who owns Ferrexpo and where are its shares traded?
Swiss-based Ferrexpo AG owns Ukrainian iron ore mines and is part of the British Ferrexpo plc. The controlling stake is owned by the Luxembourg-based company Fevamotinico S.a.r.l., whose beneficiary is Konstantin Zhevago, who has previously been sanctioned by Ukraine.
Ferrexpo plc’s investors include BlackRock, BNP Paribas, JPMorgan, Saxo Bank, and private investors. The company’s shares are listed on the London Stock Exchange.
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