Ferrexpo temporarily halts production in Ukraine due to attacks on energy grid

Reasons for the temporary production halt

Mining company Ferrexpo plc announced the temporary suspension of production activities in Ukraine. The main cause was the unstable supply of electricity required to maintain production processes. The company noted that this was a consequence of further attacks on energy infrastructure facilities, specifically power transmission lines and substations.

The relevant announcement was published on the London Stock Exchange. According to company data, the current level of power supply to the group's production facilities is insufficient for continuous operation, so a decision was made to halt production until the situation improves.

Status of assets and product supply

Ferrexpo emphasised that the company's production assets themselves have not sustained damage. Despite the production halt, the group retains the ability to fulfil obligations to European clients by using existing stocks of finished products.

«Активи Ferrexpo не зазнали пошкоджень; наразі група має можливість здійснювати поставки європейським клієнтам за рахунок наявних запасів готової продукції» (Ferrexpo's assets have not sustained damage; currently, the group has the ability to make deliveries to European clients using existing stocks of finished products), the company stressed.

Ferrexpo representatives stated that they will continue to monitor the power supply situation. Production resumption is planned as soon as operating conditions allow it to be carried out on a commercially viable basis.

Production dynamics in 2026

The company's production indicators show a significant decline against the backdrop of military actions. For the period from January to September 2026, Ferrexpo produced 2.04 million tonnes of pellets, which is 27% less than in the same period of 2025.

A further decline was observed in the third quarter of the current year: pellet production decreased by 24% compared to the second quarter. The specific figures were as follows: 656,650 tonnes in the third quarter versus 860,210 tonnes in the second.

The total volume of marketable product production, which includes pellets and iron ore concentrate, fell by 54% in the first three quarters of 2026, amounting to 2.34 million tonnes.

Ownership structure and Ukrainian assets

The company Ferrexpo, controlled by oligarch Zhevago, owns key mining assets in Ukraine. The group's structure includes:

• 100% stake in Yerystivskyi GZK LLC;
• 99.9% stake in Bilanivskyi GZK LLC;
• 100% of shares in Poltavskyi GZK JSC.