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Automatically translated version. May contain inaccuracies compared to the original.
Ferric ore company Ferrexpo with its main assets in Ukraine decided to temporarily suspend the production of iron ore products. The main reasons were the ongoing threat of Russian attacks on port infrastructure and the need to preserve working capital.
This was reported by Delo.ua with reference to Interfax-Ukraine.
Currently the group is able to fulfill obligations to European customers using existing stock.
Restart of mining and processing will depend on attracting additional working capital. In the absence of new investments or financing, the company will have enough money only until mid-September 2026 year.
The financial position of the group continues to deteriorate: as of 30 June 2026 year, Ferrexpo’s net cash position fell to $21 mln (compared with $25 mln at the end of March and $47 mln at the beginning of the year).
The company also reported the share of a civilian vessel with Ferrexpo patches, which previously suffered a Russian strike and drifted in the Black Sea.
The vessel was able to be moved out of the military risk zone — now it is being towed to the nearest Black Sea port for assessment of damages and cargo condition.
Earlier, Viktor Lotous, head of the board of Poltava Mining and Processing Plant, assessed the cargo value at $5–6 mln and warned of the risk of its loss if it drifted toward the occupied Crimea.
Despite difficulties in the second quarter 2026 year, when production grew by 64% compared to the first quarter (to 860,2 thousand tons), the overall half-year figure proved weak.
In January–June Ferrexpo produced 1,38 million tons of briquettes, which is 36% less than in the corresponding period last year. For comparison, for the entire 2025 year the company reduced output by 47% — to 3,22 million tons.
About Ferrexpo
Ferrexpo plc – a Swiss company in the mining sector, specializing in the extraction and processing of iron ore, whose largest shareholder is businessman Kostyantyn Zhevago.
Ferrexpo produces and exports iron ore products to steel mills around the world.
The company is registered in the United Kingdom, has an operational center in Switzerland, and its main production assets are located in Ukraine. The company owns 100% of LLC "Yeryistivskyi GZK", 99,9% - LLC "Bilansky GZK" and 100% of the shares of PrAT Poltavskyi GZK.
In February 2026 year the Economic Court of Poltava region 24 February opened proceedings in the bankruptcy case of Poltava mining and processing plant, one of Ukraine’s largest producers of iron ore feedstock.
Also Ferrexpo announced the sale of its transshipment vessel Iron Destiny. The deal amount is 7,7 million US dollars in net cash.
Recall that Poltava Mining and Processing Plant (PGZK), which is Ferrexpo’s main production asset, temporarily suspended its work. The main reasons for the forced shutdown were a sharp liquidity shortage, suspension of sea routes, and port blockades.
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