Ferrexpo ups pellet output 70% in H1
MOSCOW. July 8 (Interfax) - Mining company Ferrexpo plc with assets in Ukraine boosted iron ore pellet output 67.6% in H1 2024 to 3.297 million tonnes, from 1.967 million tonnes a year previously.
Ukrainian media reported, quoting a Ferrexpo press release, that output fell 182% in Q2 2024 to 1.483 million tonnes, from 1.814 million tonnes in Q1 2024.
Commercial iron ore concentrate production grew to 429,865 tonnes in H1 2024, from 160,000 tonnes a year previously and totaled 189,038 tonnes in Q2.
Total commercial production (pellets and iron ore concentrate) rose75.3% to 3.727 million tonnes in H1 from 2.126 million tonnes in the same period last year.
"This is our best performance since [...] February 2022. During the quarter access to the Black Sea maritime corridor enabled us to continue shipments from Ukrainian ports. Since the corridor was opened in late 2023, it is estimated that over 800 ships have safely passed through, including 90 with ferrous commodities." Lucio Genovese, Ferrexpo Executive Chair, was quoted as saying.
However he said freight rates and insurance risk premiums remain high, not only for the passage to Ukraine, but also through the Red Sea. Other cost pressures continued to rise during the second quarter, especially electricity prices. Ferrexpo "moved early to source alternative power from Ukraine's European neighbors, which has so far resulted in minimal disruption to its production activities," Genovese said.
The Group operated two, sometimes three pelletizing lines (out of four) during the quarter, alternating product quality depending on demand from customers and expanded logistics capacity. Production of DR pellets resumed during the quarter. With the Group's nearly completed press filtration complex in operation, improvements in the physical strength and chemical quality of pellets were observed.
Ferrexpo reduced pellet production 36.5% in 2023 to 3.845 million tonnes.
Ferrexpo owns 100% Yeristovo Mining and Poltava Mining and 99.9% of Belanovo Mining.