Swiss-headquartered miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced its production results for the third quarter of 2022.
In the third quarter this year, the company’s iron ore production moved down by 66 percent year on year and by 57 percent compared to the previous quarter to 905,000 mt. In particular, the company’s output of pellets totaled 839,000 mt, decreasing by 60 percent quarter on quarter and by 68 percent year on year, as a result of Russia’s invasion of Ukraine and associated logistics constraints requiring production to be curtailed. The company currently has one out of four pelletizer lines in operation, reflecting accessible customer markets. Ferrexpo’s output of pellets from iron ore with 65 percent Fe content totaled 576,000 mt, down by 76 percent year on year and by 71 percent compared to the second quarter this year.
On the other hand, the company’s direct reduction pellet production in the third quarter totaled 263,000 mt, increasing by 192 percent quarter on quarter and up by 35 percent year on year.
The company’s sales in the third quarter this year decreased by 65 percent year on year to one million mt amid ongoing logistical challenges. The company is continuing discussions with logistics providers to resume access to overseas markets via neighboring countries.
Meanwhile, in the first nine months this year, Ferrexpo’s iron ore production totaled 5.72 million mt, down by 32 percent, while its pellet output amounted to 5.63 million mt, decreasing by 31 percent, both year on year.
“We continue to operate in accordance with the volume of sales that we can achieve at the present time, and expect to increase production once we have further clarity on logistics corridors. The group continues to adapt to its present circumstances, as demonstrated by our increased focus on producing direct reduction pellets,” Jim North, Ferrexpo CEO, stated.