Swiss-headquartered miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced its production results for the second quarter and the first half of 2024.
In the second quarter this year, the company’s iron ore production moved up by 42.7 percent year on year and down by 18.5 percent compared to the previous quarter to 1.67 million mt. In particular, the company’s output of pellets totaled 1.48 million mt, decreasing by 18.2 percent quarter on quarter and up by 39.9 percent year on year.
During the given quarter, access to the Black Sea maritime corridor enabled the company to continue shipments from Ukrainian ports. However, freight rates and insurance risk premiums remain high, not only for passage to Ukraine, but also through the Red Sea. Other cost pressures continued to increase in the second quarter, especially electricity prices. Attacks on energy generation and transmission infrastructure have reduced Ukraine’s domestic power supply. Ferrexpo moved early to source alternative power from Ukraine's European neighbors, which has so far resulted in minimal disruption to its production activities.
In the first half, Ferrexpo’s iron ore production totaled 3.73 million mt, up by 75.9 percent, while its pellet output was 3.29 million mt, increasing by 67.8 percent, both year on year. This is the company’s best performance since Russia’s invasion of Ukraine.