Ferrexpo chair backs miner’s ‘contribution’ to Ukraine as operations proceed

Ferrexpo’s commitment to maintaining mining operations is an important contribution to Ukraine its executive chair said, as the war in the country enters its 1,000th day.

The iron ore miner now has 709 staff serving in the Armed Forces of Ukraine, more than at any time since the February 2022 Russian invasion, with 154 veterans safely returning to work and Forrexpo mourning the loss of 44 colleagues.

Ferrexpo has continued to operate its iron ore mines in Ukraine, despite the war, but the conflict has continued to cause disruption to its supply lines.

A report from steel industry consultancy GMK Center earlier this year shows Ukrainian iron ore production was down by 60 per cent in 2023 compared to pre-war volumes.

Lucio Genovese, Ferrexpo executive chair, said: ‘One of the biggest contributions that we can make is to keep our operations going, so that we are relevant for our 8,000 strong work force, and in turn for their families and communities.

‘In the early months of 2024, their commitment was evident, when despite the winter’s cold and short days, and the constant waves of interruption due to air raid alerts, they achieved a two-fold increase in production.

‘By continuing operations, we also remain relevant to our suppliers, the government and our customers.’

Ukrainian iron ore production has fallen sharply since the onset of the war 

Ferrexpo has procured over $1billion in goods and services in Ukraine, paid over $300million in taxes and royalties, and exported ‘well over’ 10 million tonnes of iron ore products since the war began, according to Genovese. 

It came as he outlined the group’s community efforts in the context of the war, including $25million in humanitarian funding and a new video series commissioned to document the experiences of veterans.

Ferrexpo shares have been depressed since the outset of the war, but received a boost earlier this month after Donald Trump won the US election.

Trump has previously pledged to end the war ‘one day’ after taking power.

Genovese said Ferrexpo’s ability to adapt throughout the conflict and the ‘resilience’ of its people leave it well placed to recover ‘as hopes grow for an end to the war’.

He added: ‘The operating environment is challenging because of the war in addition to higher costs and lower market prices. Nonetheless, we adapt, change strategies, and continue to operate.

‘This is testament to the strength of our collective efforts today, and an indicator of the opportunities that lie ahead in the future for the company.

‘My sincere thanks to each and every one of our people on the ground for their commitment to Ferrexpo and to Ukraine.

‘Slava Ukraini.’