Swiss-headquartered miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced a temporary suspension of iron ore production at its mining and pelletizing operations in Ukraine following continued disruptions to its Black Sea export logistics after the recent vessel incident.
Damaged vessel moved to Black Sea port for inspection
The company stated that, following its announcement on July 28, 2026, the owner of the vessel carrying Ferrexpo's direct reduction-grade (DR-grade) pellets explored several salvage options, as SteelOrbis reported previously.
Despite the difficult conditions, the vessel was successfully located, removed from the war-risk area and is currently being towed to one of the nearest Black Sea ports, where it will undergo a technical inspection and an assessment of the condition of its cargo.
Production halt aims to preserve working capital
Ferrexpo said that the continuing threat of attacks on Ukrainian ports and vessels has significantly restricted its Black Sea export routes. In order to preserve its working capital, the company has decided to temporarily halt production of iron ore products.
It noted that the restart of production will depend, among other factors, on securing additional working capital. The company added that it is currently able to continue supplying its European customers from existing inventory stockpiles.
Liquidity expected to last until mid-September
Ferrexpo also warned that, without additional financing, its net accessible cash resources are expected to be sufficient only until mid-September 2026. The company emphasized that this liquidity outlook remains subject to several factors, including iron ore price volatility, operating expenses such as energy costs, developments related to the vessel incident, the continued suspension of VAT refunds, and the ongoing legal proceedings involving Ferrexpo Poltava Mining.
