MINEX Forum

Tag: bankruptcy

  • Bosnia’s Nova Ljubija Iron Ore Mine Preparing Bankruptcy Filing Amid Financial Struggles

    Bosnia’s Nova Ljubija Iron Ore Mine Preparing Bankruptcy Filing Amid Financial Struggles

    Iron ore producer Nova Ljubija in Bosnia and Herzegovina is preparing to initiate bankruptcy proceedings after its owners determined that continuing operations is no longer financially viable.

    According to local media reports, the company is currently finalising documentation and is expected to file for bankruptcy in the coming days. Suzana Gasic, deputy director of Nova Ljubija, confirmed the move, noting that prolonged financial difficulties faced by its sole customer, steel producer Nova Zeljezara Zenica, have significantly impacted the mine’s operations.

    Nova Zeljezara Zenica has reportedly been unable to settle outstanding obligations to the mining company, creating a sustained liquidity strain that contributed to the decision to seek bankruptcy protection.

    The Nova Ljubija mine employs around 600 workers and has been a key iron ore supplier to Bosnia’s steel industry. The company is jointly owned by local diversified group Pavgord and mining operator Rudnici Zeljezne Rude Ljubija.

    The situation follows a broader restructuring of steel assets in the country. In June 2025, Luxembourg-based steel giant ArcelorMittal agreed to sell its shares in steel plant operator ArcelorMittal Zenica and iron ore producer ArcelorMittal Prijedor to Pavgord.

    Industry observers note that the difficulties faced by Nova Ljubija reflect broader pressures within the regional steel sector, including financial instability among downstream producers and shifting market conditions.

  • Ferrexpo’s Ukrainian Unit Faces Bankruptcy Proceedings Amid Legal Turmoil

    Ferrexpo’s Ukrainian Unit Faces Bankruptcy Proceedings Amid Legal Turmoil

    Ukraine-focused miner Ferrexpo announced on Thursday that the Commercial Court of Poltava has accepted an application to initiate bankruptcy proceedings for its Ukrainian subsidiary, Ferrexpo Poltava Mining (FPM).

    Following the announcement, Ferrexpo’s shares dropped 6.6%, trading at 65 pence.

    Despite the court’s acceptance of the application, the company clarified that formal bankruptcy procedures have not yet commenced. A preparatory court hearing is scheduled for May 27, during which the court will review the application.

    Ferrexpo has been embroiled in legal disputes in Ukraine since 2022 when its main shareholder, Ukrainian billionaire Kostiantyn Zhevago, was arrested on embezzlement charges linked to the collapse of Finance & Credit Bank.

    In 2024, a Ukrainian court ruled against FPM, demanding a payment of 4.73 billion hryvnias ($114.06 million), alleging the subsidiary had provided guarantees to Bank F&C. Although this claim was suspended by the Ukrainian court of appeal, the final decision remains pending.

  • Ukraine’s President Extends Moratorium on State Mine Bankruptcies Through 2026

    Ukraine’s President Extends Moratorium on State Mine Bankruptcies Through 2026

    President Volodymyr Zelenskyi has signed legislation extending protections for state-owned mines in Ukraine, preventing their bankruptcy through January 1, 2026. The measure aims to preserve critical energy infrastructure during challenging times.

    The legislation, formally known as Bill No. 12220 “On some amendments to laws of Ukraine on restoration of solvency of certain state enterprises in critical condition in the sphere of energy,” received presidential approval on 29 January 2025, following its passage by the Verkhovna Rada on 14 January 20205.

    This protective measure specifically targets state enterprises in the energy sector that are experiencing financial difficulties, implementing a moratorium on bankruptcy proceedings. The law represents a strategic move to maintain stability in Ukraine’s energy sector by preventing the liquidation of state-owned mining operations.

    The extension of the moratorium underscores the government’s commitment to preserving its domestic energy production capabilities and protecting strategic state assets during a period of significant challenges for the country’s industrial sector.

  • Northvolt Subsidiary Files for Bankruptcy Following Project Cancellation

    Northvolt Subsidiary Files for Bankruptcy Following Project Cancellation

    Sweden’s Northvolt announced on Tuesday that one of its subsidiaries, Ett Expansion AB, has filed for bankruptcy after the cancellation of a significant project. The subsidiary had been responsible for a planned tripling of capacity at Northvolt’s gigafactory in northern Sweden, but the board opted to cancel the expansion last month. Moving forward, all dealings with Ett Expansion AB will be handled by a bankruptcy trustee.

    This development comes as Northvolt, a leading European battery maker, continues to consolidate its operations amid financial challenges. In September, the company announced job cuts and a streamlining of its operations, raising concerns about its future as Europe’s main hope for electric vehicle battery production. The company faces stiff competition from Chinese manufacturers and has struggled with production issues and sluggish demand.

    Despite these hurdles, Northvolt remains in discussions with stakeholders and is working to secure additional funding to accelerate production at its fully-built Northvolt Ett facility. The company has already secured more than $10 billion in equity and debt financing from major backers, including Volkswagen, Goldman Sachs, and BlackRock. In January, Northvolt secured a $5 billion green loan package intended for the now-cancelled plant expansion.

    Northvolt stressed that the bankruptcy filing for Ett Expansion AB does not impact its other legal entities or ongoing operations, and the company remains focused on delivering its commitments to automotive customers.