Ferrexpo

Last updated
Ferrexpo plc
Company type Public
LSE:  FXPO
IndustryIron Ore Mining and Processing
Founded1960
Headquarters Baar (ZG), Switzerland
Horishni Plavni, Ukraine
Key people
Lucio Genovese, Chairman
Jim North, CEO
ProductsIron Ore Pellets
RevenueDecrease2.svg $651.8 million (2023) [1]
Decrease2.svg $71.1 million (2023) [1]
Decrease2.svg $(84.8) million (2023) [1]
Subsidiaries PJSC Ferrexpo Poltava Mining,

LLC Ferrexpo Yeristovo Mining,

LLC Ferrexpo Belanovo Mining
Website www.ferrexpo.com
Ferrexpo unveiled Europe's first large scale autonomous haul trucks (CAT 793D) at its Yeristovo mine in late 2020. Ferrexpo autonomous truck.jpg
Ferrexpo unveiled Europe's first large scale autonomous haul trucks (CAT 793D) at its Yeristovo mine in late 2020.

Ferrexpo plc is a Swiss-based commodity trading and mining company which is the third largest exporter of iron ore pellets in the world. Ferrexpo's operating base is in central Ukraine, where it operates three iron-ore mines and an iron ore pellet production facility. The company's trading office is located in London where it is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. It is also a constituent of the FTSE4Good Index.

Contents

History

The business was founded by the Soviet government in 1960 as the "Poltava Mining and Extraction Combinat" to exploit iron ore reserves in Horishni Plavni (formerly Komsomolsk), Ukraine. [2] In 1977 it started selling its product in the form of iron ore pellets. [2]

In June 2007, Ferrexpo plc was listed on the London Stock Exchange, producing 8.6 million tonnes of iron ore pellets in the year prior to listing. [3]

In 2008 and 2009 the company established additional new complexes around Horishni Plavni and Kremenchuk. In 2011, the Company opened its second iron ore mine, the Yeristovo mine, which is located immediately north of the Company's main iron ore mine - the Poltava iron ore mine. Upon opening Yeristovo, Ferrexpo became the first company to open a new mine in Ukraine since the country's independence. [4]

Ferrexpo produces high grade iron ore pellets, which are a premium product for use in the steel industry. Ferrexpo pellets.jpg
Ferrexpo produces high grade iron ore pellets, which are a premium product for use in the steel industry.

In March 2019 the company delayed publication of its results pending an investigation into charitable donations in Ukraine. [5] In April 2019 its auditors Deloitte resigned, with Ferrexpo's former chief financial officer selling £400,000 of shares the day before the announcement. [6] In August 2019 Ferrexpo announced that the charitable donations may have been misappropriated; it had donated $24 million to the charity in 2017 and $9.5 million in 2018. [7] In October 2019, the CEO, Kostyantyn Zhevago, stood down from his post, following allegations of the embezzlement of $113 million from the Finance & Credit Bank. [8] [9] [10]

Following Zhevago's departure, Jim North became acting CEO; the company announced his appointment as permanent CEO in February 2022. [11]

Operations

Ferrexpo produces iron ore pellets, which are used in the global steel industry to produce high quality types of steel. Iron ore pellets are the highest quality form of iron ore that steel producers can utilise, offering steel producers the opportunity to improve blast furnace productivity, whilst simultaneously reducing carbon emissions by at least 30% for every tonne of pellets used instead of the more commonly used sinter fines, which are typically lower grade and require sintering prior to charging into the blast furnace. [12]

The Company, which sells most of its product to steel mills of Central Europe and Asia, is organised into the following units: [13]

The company's mining components are all based in central Ukraine and consist of:

Additionally, the company owns several nearby iron deposits which are not yet being actively exploited. From north to south, these are:

Ownership

The founder, Kostyantyn Zhevago, owns 50.3% of the company. [14] Kostyantyn Zhevago was arrested in December 2022 under an international arrest warrant, he is wanted in Ukraine in a major embezzlement case. [15]

Related Research Articles

<span class="mw-page-title-main">Poltava Oblast</span> Oblast (region) of Ukraine

Poltava Oblast, also referred to as Poltavshchyna, is an oblast (province) of central Ukraine. The administrative center of the oblast is the city of Poltava. Most of its territory was part of the southern regions of the Cossack Hetmanate. Population: 1,352,283.

<span class="mw-page-title-main">Vale S.A.</span> Multinational diversified metals and mining corporation

Vale, formerly Companhia Vale do Rio Doce, is a Brazilian multinational corporation engaged in metals and mining and one of the largest logistics operators in Brazil. Vale is the largest producer of iron ore and nickel in the world. It also produces manganese, ferroalloys, copper, bauxite, potash, kaolin, and cobalt; as of 2014 the company operated nine hydroelectricity plants, and a large network of railroads, ships, and ports used to transport its products.

<span class="mw-page-title-main">Horishni Plavni</span> City in Poltava Oblast, Ukraine

Horishni Plavni, before 2016 known as Komsomolsk-na-Dnipri or simply Komsomolsk, is a purpose-built mining city in central Ukraine, located on the left bank of the Dnieper, in Kremenchuk Raion of Poltava Oblast, practically conurbated with the larger neighboring city of Kremenchuk. Horishni Plavni hosts the administration of Horishni Plavni urban hromada, one of the hromadas of Ukraine. Population: 49,854.

Metalloinvest Management Company LLC is a Russian mining and metallurgy company specializing in the manufacture of steel. It was founded in 1999 and is composed of a mining division and a steel division. USM Holdings Business Development owns 100% of Metalloinvest JSC. Alisher Usmanov is the major beneficiary of USM Holdings (60%), with other major beneficiaries — the companies of Andrei Skoch and Farhad Moshiri — owning 30% and 10%, respectively.

<span class="mw-page-title-main">Cleveland-Cliffs</span> Cleveland-based steelmaking company

Cleveland-Cliffs Inc. is an American steel manufacturer based in Cleveland, Ohio. They specialize in the mining, beneficiation, and pelletizing of iron ore, as well as steelmaking, including stamping and tooling. The company was the world's 25th-largest steel producer and the third-largest in the United States in 2022. It is the largest flat-rolled steel producer in North America.

<span class="mw-page-title-main">FC Hirnyk-Sport Horishni Plavni</span> Football club

FC Hirnyk-Sport Horishni Plavni is a Ukrainian football club based in Horishni Plavni, Poltava Oblast. The club competes in the First League.

<span class="mw-page-title-main">Kremenchuk Raion</span> Subdivision of Poltava Oblast, Ukraine

Kremenchuk Raion is a raion (district) in Poltava Oblast, central Ukraine. The raion's administrative center is the city of Kremenchuk. Population: 387,200.

<span class="mw-page-title-main">Kostyantyn Zhevago</span> Ukrainian billionaire and politician

Kostyantyn Valentynovych Zhevago is a Ukrainian businessman, philanthropist and politician. He was a member of the Verkhovna Rada continuously for 21 years from 1998 until 2019. Executive Director of Ferrexpo in 2008-2019.

<span class="mw-page-title-main">Northern Iron Ore Beneficiation Works</span>

Northern Iron Ore Beneficiation Works (PivnGZK) was built and launched in Kryvyi Rih in 1963 and is one of several iron ore dressing complexes around Kryvyi Rih. Along with Ingulets Iron Ore dressing Works and Central Iron Ore Enrichment Works, it belongs to Ukrainian holding company Metinvest.

Central Iron Ore Enrichment Works (CGZK) specializes in processing and production of raw materials for the steel industry, merchant concentrate with an average Fe content of 65.0% to 68.2% and pellets with an average Fe content of 63.9%. It is the only mine in Ukraine, that simultaneously uses open-pit quartzite fields and underground mining.

The Belanovskoye mine is a large iron mine located in central Ukraine in the Poltava Oblast. Belanovskoye represents one of the largest iron ore reserves in Ukraine and in the world having estimated reserves of 1.7 billion tonnes of ore grading 31% iron metal. The mine is 2km north of the Yeristovskoye mine and immediately south of the Zarudenskoye mine, both which are also iron deposits owned by Ferrexpo.

The Zarudenskoye mine is a large iron mine located in central Ukraine in the Poltava Oblast. Zarudenskoye represents one of the largest iron ore reserves in Ukraine and in the world having estimated reserves of 1.5 billion tonnes of ore grading 31% iron metal. The deposit sits immediately north of the operational Belanovskoye mine, and immediately south of the undeveloped Vasilievskoye mine.

The Vasilievskoye mine is a large iron mine located in central Ukraine in the Poltava Oblast. Vasilievskoye represents one of the largest iron ore reserves in Ukraine and in the world having estimated reserves of 1.4 billion tonnes of ore grading 31% iron metal. The deposit sits immediately north of the Zarudenskoye mine, and immediately south of the Kharchenkovskoye mine.

The Kharchenkovskoye mine is a large iron mine located in central Ukraine in the Poltava Oblast. Kharchenkovskoye represents one of the largest iron ore reserves in Ukraine and in the world having estimated reserves of 2.8 billion tonnes of ore grading 30% iron metal. The mine sits immediately north of Vasilievskoye mine and immediately south of Manuilovskoye mine.

The Manuilovskoye mine is a large iron mine located in central Ukraine in the Poltava Oblast. Manuilovskoye represents one of the largest iron ore reserves in Ukraine and in the world. It is estimated that it has reserves of 3.5 billion tonnes of ore grading 30% iron metal. The mine sits immediately north of the Kharchenkovskoye mine and immediately south of the Brovarkovskoye mine.

The Brovarkovskoye mine is a large iron mine located in central Ukraine in the Poltava Oblast. Brovarkovskoye represents one of the largest iron ore reserves in Ukraine and in the world having estimated reserves of 4 billion tonnes of ore grading 30% iron metal. The mine sits immediately north of the Manuilovskoye mine.

<span class="mw-page-title-main">Football Association of Poltava Oblast</span> Governing body of association football in Poltava Oblast

Football Association of Poltava Oblast is a football governing body in the region of Poltava Oblast, Ukraine. The federation is a member of the Football Federation of Ukraine.

<span class="mw-page-title-main">Kremenchuk River Port</span> Port in Ukraine

Kremenchuk River Port also called Kremenchug River Port is a port located on the Dnipro in the city of Kremenchuk, Poltava Oblast, Ukraine. The Port of Kremenchuk has seven piers, as well as river stations in Kremenchuk, Svitlovodsk, and Horishni Plavni.

<span class="mw-page-title-main">Oleksiy Movchan</span> Ukrainian politician

Oleksiy Vasylovych Movchan is a Ukrainian politician currently serving as a People's Deputy of Ukraine representing Ukraine's 150th electoral district from Servant of the People since 2019.

References

  1. 1 2 3 "Preliminary Results 2023" (PDF). Ferrexpo. Retrieved 24 March 2024.
  2. 1 2 "Ferrexpo IPO Prospectus" (PDF). 2007.
  3. ↑ "UPDATE 1-Iron ore miner Ferrexpo valued at $1.67 bln in IPO". Reuters. 2007-06-15. Retrieved 2021-01-27.
  4. ↑ "North sets Ferrexpo on a course for 'carbon neutrality'". IM Mining. 17 December 2020. Retrieved 1 March 2021.
  5. ↑ "Ferrexpo delays full-year results amid Ukraine charity probe". FT. 19 March 2019. Retrieved 20 March 2019.
  6. ↑ Jolly, Jasper (29 April 2019). "Ferrexpo finance chief sold £400,000 stake on eve of share slump". The Guardian. Retrieved 30 August 2019.
  7. ↑ Jolly, Jasper (30 August 2019). "Ferrexpo says funds to Ukrainian charity may have been misappropriated". The Guardian. Retrieved 30 August 2019.
  8. ↑ "Ukrainian court bans the sale of Ferrexpo shares while CEO under investigation". Intellinews. 31 January 2020. Retrieved 15 February 2022.
  9. ↑ "Ukraine puts Ferrexpo controlling shareholder on international wanted list". Reuters. 15 July 2015. Retrieved 29 March 2022.
  10. ↑ "Authorities are hunting for Kostyantyn Zhevago, CEO of Ferrexpo". Ukraine Business News. 11 October 2019. Retrieved 29 March 2022.
  11. ↑ "Ferrexpo gives acting chief executive officer Jim North permanent role". Shares Magazine. 15 February 2022. Retrieved 15 February 2022.
  12. ↑ "Ferrexpo sets decarbonisation course to 2030 and 205". IM Mining. 11 October 2021. Retrieved 15 February 2022.
  13. ↑ "Ferrexpo has attractions despite founder's big slice". The Times. 21 March 2008. Retrieved 3 December 2016.
  14. ↑ "Ferrexpo must show its mettle to woo investors". The Times. 10 June 2007. Archived from the original on December 20, 2016. Retrieved 3 December 2016.
  15. ↑ "Former Ukrainian MP Zhevago detained in Courchevel - SBI" . Retrieved 28 December 2022.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.