Understand the impact of the Ukraine conflict from a cross-sector perspective with the GlobalData Executive Briefing: Ukraine Conflict
Swiss mining firm Ferrexpo has temporarily paused production in Ukraine following damage to state-run electrical infrastructure by Russian missile strikes.
The company said no workers had been injured by the attacks.
The missile strikes have damaged state-owned electrical infrastructure located outside Ferrexpo’s operations.
As a result, the power supply to the firm’s operations is currently limited and currently being used only for critical equipment needed for essential services, as well as local communities.
At present, the damage is being assessed, with an anticipated production downtime period being outlined.
Despite the incident, Ferrexpo said it currently has a ‘sufficient volume of its products’, either in stockpiles or transit, to meet its anticipated sales volumes.
Ferrexpo CEO Jim North said: “At Ferrexpo, since the start of Russia’s invasion of Ukraine in 2022, our first priority has always been our people, and we are working to ensure the safety of our team in Ukraine.
“The events of yesterday have resulted in significant damage to major cities across Ukraine, as well as a power outage at our operations and local communities.
“We are working to ensure that power is provided in critical areas, both within our facilities and in local communities, in order to support the safety of our workforce and community members.”
Based in Baar, Switzerland, Ferrexpo exports high-grade iron ore pellets to the global steel industry and has assets in Ukraine.
Last year, the firm produced a total of 11.2 million tonnes of iron ore pellets.
At the start of the Ukraine conflict, Ferrexpo issued force majeure notices to some of its customers after exports were halted at one of the country’s southern ports.
The company owns a berth at the port of Pivdennyi, formerly known as Yuzhny, which it uses for shipping pellets to customers.