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Ferrexpo, a Swiss commodity trading and mining company with assets in Ukraine, has issued force majeure notices to some of its customers as exports halted at a southern Ukrainian port.
The iron ore miner owns a berth at the port of Pivdennyi (formerly known as Yuzhny) for shipping pellets to customers.
Following Russia’s invasion of the country, the port has now temporarily suspended exports, according to orders from port authorities.
Ferrexpo, however, said that it continues its mining and processing operations located adjacent to Horishni Plavni in central Ukraine.
In a press statement, Ferrexpo said: “The Group has the ability to stockpile its iron ore pellets at the site while Ukraine’s logistic networks continue to experience disruption.”
Ferrexpo exports high-grade iron ore pellets to customers in Europe via rail or barge, or loads products onto oceangoing vessels at the port of Pivdennyi.
Last year, the company produced 11.2 million tonnes of iron ore pellets. It serves steel mills in Austria, Germany, Japan, South Korea, Taiwan, China, Turkey, Slovakia, the Czech Republic, Vietnam and the US.
It was recently reported that Japan’s Nippon Steel was weighing alternative sources in Brazil and Australia to buy iron-ore to address a possible deficit amid the Russia-Ukraine conflict.
Amid ongoing tensions, Luxembourg-based steel production company ArcelorMittal will close production at its underground mines in Ukraine.