Ukraine-based iron ore miner Ferrexpo declares force majeure

Iron ore pellet producer Ferrexpo said Feb. 25 it issued force majeure notices to some customers as logistics operations were disrupted following the invasion of Ukraine by Russia.

Export activities at the Capesize terminal at Pivdennyi, in the Black Sea port of Yuzhny, have been temporarily suspended following notification from port authorities, Ferrexpo said in a statement. Ferrexpo's iron ore mining and processing operations in central Ukraine continue to operate, it said.

"The group's marketing department has issued force majeure notices to certain customers that were due to receive the group's products via oceangoing vessel in the near term," it said.

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The company has resources to stockpile iron ore pellets at the mining site, should Ukraine's logistics networks continue to experience disruption, the statement added.

Ferrexpo is understood to have limited rail capacity to move pellets into Europe through Ukraine's border. Following the suspension of regular rail transportation on Feb. 24, the company has difficulties identifying service levels, a company spokesperson said. Customers in central and Eastern Europe typically receiving deliveries by rail and barge have not yet received force majeure notices.

Ferrexpo in 2021 produced 11.2 million mt of mainly blast furnace acid pellets, supplying steel mills in Austria, Germany, Japan, South Korea, Taiwan, China, Slovakia, the Czech Republic, Turkey, Vietnam and the US.

Ferrexpo is the world's third-largest exporter of pellets after Vale and LKAB. The company said Feb. 24 that it is closely monitoring developments in Ukraine and will prioritize the safety of its workforce while the group's mining and processing facilities around Horishni Plavni keep operating.

Iron ore pellet suppliers Ukraine's Metinvest and Russia's Metalloinvest also serve markets in Central and Eastern Europe.