Swiss miner Ferrexpo halts Ukraine iron ore production after Russian attacks
Photo: The Port of Greater Odessa (Getty Images)
The mining company Ferrexpo is suspending iron ore production in Ukraine. This decision was made due to the threat of Russian strikes on Black Sea ports and to preserve working capital.
"The ongoing threat of attacks in and around Ukrainian ports has materially restricted the Group's Black Sea export logistics routes. As a result, and to preserve the Group's working capital position, the Company has decided to temporarily suspend production of iron ore products from its mining and pelletising operations in Ukraine," the statement reads.
Currently, the company continues to fulfill its obligations to European customers by shipping products from existing inventory. However, the resumption of full-scale production depends entirely on securing additional working capital.
In the absence of new investments and additional financing, the company's current cash reserves will last only until mid-September 2026.
Damaged vessel carrying cargo rescue
The company also provided details of the incident involving a civilian vessel that was fired upon by Russia while transporting Ferrexpo's iron ore pellets. The damaged ship, which had been drifting at sea, was successfully located and escorted out of the dangerous combat zone.
The vessel is currently being towed to one of the nearest ports on the Black Sea for a technical inspection and assessment of the cargo’s condition.
Viktor Lotous, Chairman of the Board of Poltava Mining and Processing Plant, previously noted that the value of this cargo is $5–6 million. There was also a serious risk of losing the vessel due to its potential drift toward the temporarily occupied Crimea.
Production volumes decline
Military operations and logistical obstacles have significantly impacted the mining giant's operating performance. In January–June 2026, Ferrexpo produced 1.38 million metric tons of pellets, a 36% decrease compared to the same period last year.
However, in the second quarter, the company managed to temporarily increase output by 64% compared to the first quarter (to 860,200 metric tons). Overall, by the end of 2025, pellet production had declined by 47% to 3.22 million metric tons.
Ferrexpo is a Swiss iron ore company with its main assets in Ukraine. The group owns 100% of the shares in Poltava Mining, 100% of Yeristovo Mining, and 99.9% of Bilaniv Mining.
Ferrexpo recently suspended seaborne shipments of pellets due to Russian attacks on ports in the Greater Odesa area.
This occurred after a vessel carrying pellets was struck. One crew member was killed as a result of the Russian attack.
