Ferrexpo ups pellets production 2-fold in Q1

In January-March 2024, compared to the same period in 2023, Ferrexpo plc (UK), which controls Poltava Mining and Yeristovo Mining (both located in Horishni Plavni, Poltava Region), increased the production of pellets 2 times to 1.814 million tons.

This is stated in the company's message, Ukrainian News Agency reports.

In the first quarter, all pellets were produced from ore with an iron content of 65%.

The company also produced 240,500 tons of concentrate (with 67% iron content).

Compared to the fourth quarter of 2023, the production of pellets increased 2.9 times.

"The possibility of exporting through Ukrainian Black Sea ports has had a positive impact not only on our production and sales, but also on the morale of our employees. Although it is a positive thing that we were able to export through Black Sea ports, it was not without problems. The logistics were difficult, and transport and insurance costs have increased. However, as the ports provide access to larger vessels, we have benefited from economies of scale. The year started with high iron ore prices and it was good that we were able to increase production and exports to take advantage of these prices," said the financial director of the company, Mykola Kladiiev.

As Ukrainian News Agency earlier reported, Ferrexpo ended 2023 with a loss of USD 85 million, while the company ended 2022 with a profit of USD 220 million.

In 2023, Ferrexpo reduced the production of pellets by 36.5% to 3.8 million tons.

The majority shareholder of the Ferrexpo group is Kostiantyn Zhevaho.