Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

Japan’s Nippon Steel is considering alternative sources in Brazil and Australia to purchase iron-ore to address possible shortfall amid tensions between Russia and Ukraine, reported Bloomberg News.

Citing Nippon Steel executive vice-president Takahiro Moris, the news agency stated that the firm currently imports 14% of its iron ore pellet feedstock from Russia and Ukraine.

In response to the Russian invasion of Ukraine, Luxembourg-based steel production company ArcelorMittal is closing production at its underground mines.

Luxembourg Times reported the firm as saying on Twitter that it will reduce operations at its Kryvyi Rih steel plant ‘to a technical minimum’. The company employs more than 20,000 people in Ukraine.

Russia’s invasion on Ukraine has also started to impact several other mining companies with operations in Russia, according to mining.com.

In response to the situation in Ukraine, Anglo-Russian precious metals mining Polymetal said it would continue its operations in Russia and Kazakhstan while sanctions that have been announced to date have not affected the company.

The firm said that the Ukraine’s rapid deterioration resulted in a material increase in possibility of additional and more severe sanctions to be imposed by the EU, the UK and the US.

In a press statement, Polymetal said: “The rapid deterioration in the situation in Ukraine has led to a material increase in the possibility of additional and more severe sanctions to be imposed by the EU, the UK and the US.

“The scope and impact of these new potential sanctions (and any potential counter-sanctions) is yet unknown, however they might affect key Russian financial institutions, as well as mining companies. Polymetal believes that targeted sanctions on the company remain unlikely.”

Update: National operator Ukrainian Railways (UZ) on 1 March confirmed that they will provide more than 40 coal cars to ArcelorMittal Kryvyi Rih on a new route, allowing supply to continue despite the ongoing conflict.