MINEX Forum

Tag: Iron ore

  • ERG Exploration to Liquidate Several Subsidiaries Amid Strategic Shift

    ERG Exploration to Liquidate Several Subsidiaries Amid Strategic Shift

    Eurasian Resources Group (ERG) has announced the liquidation of several of its subsidiaries under ERG Exploration, as detailed in its consolidated report for 2025. ERG Exploration primarily focuses on the exploration and development of mineral deposits, providing a full range of geological exploration services including design, fieldwork, geophysical studies, and drilling operations. The decision to dissolve these subsidiaries, namely TOO ‘Nadezhdinskoye’, TOO ‘Zharkulskoye’, and TOO ‘Yeltai-4’, was approved by the group’s owners in May 2026.

    The report indicates that the projects of the subsidiaries earmarked for liquidation were associated with the exploration or preparation for the extraction of iron ore. ERG Exploration held an 85% stake in both ‘Nadezhdinskoye’ and ‘Zharkulskoye’, while it owned an 81% stake in ‘Yeltai-4’, with the remaining shares held by the Tobol SPC.

    In May 2023, the company initiated the process of returning contracted territory to the state, in compliance with the Republic of Kazakhstan’s Code on Subsoil and Subsoil Use. As of 31 December 2025, the return of the contracted territory for ‘Yeltai-4’ had not been completed, as noted in the report.

    Recent reports from the Telegram channel Metals & ESG Trends suggest that Qarmet may acquire ERG’s iron ore asset in the Kostanay region, the Sokolovsko-Sarbayskoye Mining and Processing Plant (SSGPO). This potential acquisition could indicate a reduced interest from the Eurasian Group in iron ore exploration moving forward.

    By the end of 2025, ERG Exploration held 18 licenses, three of which were extended last year until 2030 for the Taukatukolsky and Tykbustak sites in the Aktobe region, as well as the Maybalik site in the Akmolinsk region. This year marks the expiration of the license for the Aktasy-Zhandaurskoye area in the Aktobe region.

    The company retains rights to subsoil use until 2028 for several areas including Voroninsky, Shvabrinsky, Sorkol, Uymola, and the western and eastern Bakay in the Aktobe region. Additionally, ERG Exploration has licenses valid until 2029 for sites such as Sorkol-West, Bakay-North, and South Kemirsay in Aktobe, as well as two licenses for Adylbay and Karabas in the Karaganda region. Rights to the North Shulidak area in Aktobe and the Spiridonovskaya area in Kostanay are valid until 2030.

    In terms of financial performance, ERG Exploration reported revenue of 5.3 billion tenge for 2025, alongside a loss of 325 million tenge for the year, highlighting the challenges faced by the company in the current market environment.

  • LKAB Introduces 120-Tonne Electric Trucks for Underground Iron Ore Mining

    LKAB Introduces 120-Tonne Electric Trucks for Underground Iron Ore Mining

    Swedish mining giant LKAB has taken a significant step towards sustainable mining by deploying two 120-tonne battery-electric trucks at its Malmberget iron ore mine. These trucks, developed in collaboration with Scania, are designed to operate at depths of up to 1,250 metres and have already transported over 100,000 tonnes of iron ore since their introduction. Each truck boasts a payload capacity of just over 70 tonnes and is equipped with a 624 kWh battery, allowing for approximately seven hours of operation on a single charge.

    The deployment of these electric trucks marks a pivotal moment in the mining industry, particularly for underground operations where electrification poses unique challenges. LKAB’s Malmberget mine moves more than 50,000 tonnes of iron ore daily, and the new trucks have completed around 1,500 round trips, transporting roughly 3,200 tonnes per charge. The charging infrastructure supports rapid charging at up to 375 kW, enabling a full charge in about 80 minutes.

    One of the key challenges for LKAB is ensuring that these battery-electric trucks can match the productivity and availability of traditional diesel trucks. As the company continues to innovate, another battery-electric model, the Sleipner, is entering its next testing phase. This 8×4 heavy-duty tipper is designed for continuous operation and will be evaluated for its ability to replace diesel trucks in ongoing production scenarios.

    The partnership between LKAB and Scania has been ongoing for several years, with previous tests of a 6×4 battery-electric tipper demonstrating promising results. By 2027, LKAB aims to electrify 30 per cent of its mining fleet, targeting the extraction and handling of at least five million tonnes of material annually without local emissions. This ambitious goal underscores the company’s commitment to reducing its environmental footprint while maintaining operational efficiency in one of the most demanding sectors of the economy.

  • Revival of the Lomonosov Iron Ore Deposit in Kazakhstan: New Mining Plans Unveiled

    Revival of the Lomonosov Iron Ore Deposit in Kazakhstan: New Mining Plans Unveiled

    The Lomonosov iron ore deposit in Kazakhstan’s Kostanay region, initially discovered in 1949, is set to undergo a significant revival after years of inactivity. According to financial reports from Lomonosov LLP for the year 2025, the company has announced plans to commence industrial mining operations. A supplementary agreement to the subsoil use contract is soon to be finalised, which will include a working programme extending until the end of 2046, the construction of a processing plant, and commitments to supply concentrate to Kazakh enterprises.

    This project, which received approval from the Ministry of Industry and Infrastructure Development’s working group in May 2026, is centred around a processing facility with a capacity of 16 million tonnes of ore per year. Preparatory work for the site is expected to take place by the end of 2026, with stripping operations scheduled between 2026 and 2028. The extraction phase is slated to begin in 2029, according to the development schedule.

    As of the end of 2015, the state commission approved the deposit’s reserves at 177 million tonnes. However, a 2014 report by Mining Associates estimated that the measured and inferred resources are significantly higher, at 507.8 million tonnes. The mining plan outlines that a total of 275.3 million tonnes of ore will be extracted over the project’s lifespan, yielding 73.5 million tonnes of concentrate with a 67% iron content. The project’s capacity is expected to increase gradually, peaking at 22 million tonnes of ore per year during the final stages of operation.

    Additionally, the Lomonosov ores contain vanadium, enhancing the project’s strategic value. The financial projections are based on a concentrate price of $100 per tonne, indicating a potentially lucrative venture for stakeholders involved in this revitalisation effort.

  • Kazakhstan’s Lomonosovskoye Iron Ore Deposit Set to Resume Operations in 2029

    Kazakhstan’s Lomonosovskoye Iron Ore Deposit Set to Resume Operations in 2029

    Kazakhstan is gearing up for a significant project aimed at the extraction of iron ore from the Lomonosovskoye deposit, located in the Kostanay region. According to financial reports from the company managing the site, preparations for mining operations are set to commence, with the first extraction planned for 2029 after years of inactivity. The report indicates that the amendment to the mining contract is in its final stages of approval, which includes a working programme extending until December 31, 2046, and plans for the construction of a beneficiation plant.

    The timeline for the project outlines that preparatory work will be conducted until the end of 2026, followed by stripping operations from 2026 to 2028, without any concurrent ore extraction. The proposed beneficiation plant is expected to have a capacity of 16 million tonnes of iron ore per year, and the project has already received preliminary approval from the Ministry of Industry.

    Originally acquired by the Austrian company Safin Handelsges. GmbH in 2008, the Lomonosovskoye deposit was initially projected to produce 6 million tonnes of iron ore annually starting in 2015. However, plans changed, and the asset was put up for sale in 2010. In 2011, Canadian firm Newbridge Capital Inc. purchased the majority stake for $70.3 million, while retaining a 15% share for Safin Handelsges. As of the end of 2025, Kazco Beteiligungs GmbH, linked to Kazax Minerals Inc., holds a 99.99% stake in the deposit, with the remaining shares held by minority investors.

    The mining contract for Lomonosovskoye was originally signed in 2009 for a duration of 21 years, allowing for five years of exploration. The reserves were officially approved at 177 million tonnes of iron ore by the state commission in 2015. Subsequent assessments indicated measured and inferred resources of 507.8 million tonnes as of October 31, 2014. The project has faced delays, including a two-year conservation period initiated in 2016, but has recently made strides towards resuming operations.

    Future cash flow projections for the project are based on key assumptions, including an iron ore price of $100 per tonne. The total expected ore production over the life of the deposit is estimated at 275.3 million tonnes, with a projected output of 73.5 million tonnes of iron concentrate containing 67% iron. The project aims to gradually increase production capacity to reach an annual extraction of 22 million tonnes in the later years of operation. Overall, the project’s implementation cost is estimated to be around $1.5 billion, highlighting its significance in Kazakhstan’s mining sector.

  • Challenges Facing Ferrexpo and Metinvest Amid Black Sea Port Blockade

    Challenges Facing Ferrexpo and Metinvest Amid Black Sea Port Blockade

    The ongoing blockade of the Black Sea ports has severely impacted Ukraine’s mining and metallurgy sectors, particularly affecting major players like Ferrexpo and Metinvest. The closure of these ports has not only disrupted agricultural exports but has also halted the maritime export of iron ore, which is crucial for the economy. Ferrexpo has been forced to suspend production at its Poltava mining and processing plant, while Metinvest has temporarily halted operations at its Southern Mining and Processing Plant (Southern GOK).

    Before the war, Ukraine produced a record 81.2 million tonnes of iron ore in 2021, with a significant portion exported to China. However, the onset of the conflict led to a drastic decline in production and exports, dropping nearly 2.5 times due to the loss of key domestic buyers and the blockade of maritime routes. The only alternative has been to redirect iron ore exports via rail to the European Union, but this has proven economically unfeasible due to high logistics costs.

    The situation briefly improved in late 2023 when a maritime corridor reopened, allowing for a resurgence in exports. However, this recovery was short-lived, as Russian attacks on energy infrastructure led to rising electricity costs, which account for a significant portion of production expenses. The combination of low global iron ore prices and high transportation costs has made it difficult for Ukrainian companies to compete with Australian and Brazilian producers.

    As of early 2026, the situation remains dire, with exports dropping by 27.3% in the first half of the year. Ferrexpo, lacking its own steel production facilities in Ukraine, is particularly vulnerable, relying entirely on exports. The company has warned that without additional funding and the resumption of full-scale shipments, it may only have enough resources to operate until mid-September. Meanwhile, Metinvest, which has its own steel mills, is also facing challenges, including a significant reduction in production and increased transportation costs due to the blockade.

    Experts warn that the continued closure of maritime routes threatens the macroeconomic stability of Ukraine, with the potential for widespread plant shutdowns if the situation does not improve soon. The reliance on European markets is not a viable long-term solution, as the logistics and costs associated with land transport are prohibitive. The Ukrainian mining sector is at a critical juncture, with the need for government intervention and support to mitigate the impact of these challenges on the industry and the economy as a whole.

  • Austrian Lawmakers Seek Probe Into Ferrexpo’s Corporate Structure and Financial Transactions

    Austrian Lawmakers Seek Probe Into Ferrexpo’s Corporate Structure and Financial Transactions

    Austrian lawmakers have submitted a parliamentary inquiry calling for an investigation into the business activities and financial structures linked to Ferrexpo plc and its major shareholder, Konstantin Zhevago, following allegations concerning transfer pricing, corporate transactions and asset ownership.

    The inquiry names several Ferrexpo-related entities, including Ferrexpo AG, The Minco Trust, First-DDSG Logistics Holding GmbH, MAG Handels- und Transport GmbH, MAGferr GmbH, Eliomys Vermögensverwaltung KG, Oxanikus Vermögensverwaltung KG and Luxembourg-based Calexco S.a.r.l. Authorities have also been asked to examine potential business links involving several individuals connected to the companies.

    The request follows reports published by Austrian magazine Profil, Zhevago’s arrest in France in 2022 and Ukrainian sanctions imposed against him in February 2025.

    One of the main issues under review concerns the marketing of iron ore pellets produced by Poltava Mining and Processing Plant. According to allegations cited in the inquiry, pellets were sold through Ferrexpo AG in Switzerland rather than directly to European steelmakers, including Voestalpine, Salzgitter and Thyssenkrupp, at below-market prices, allowing profits to be shifted outside Ukraine. The alleged outstanding debt to the Poltava operation is estimated at more than US$500 million. Ferrexpo has rejected the allegations, stating that all transactions were conducted on market terms and complied with applicable transfer pricing regulations.

    The parliamentary inquiry also requests an examination of Ferrexpo’s historical relationship with Voestalpine, including the sale of interests in VA Intertrading AG to Calexco S.a.r.l., existing commercial agreements and whether any insider information may have been used in securities trading. Austrian financial regulators have been asked to clarify whether investigations into potential market manipulation or insider trading have been conducted.

    Separately, lawmakers are reviewing the activities of First-DDSG Logistics Holding GmbH, which transported Ferrexpo products. The inquiry notes that the logistics company reported losses of €44.8 million in 2022, €42.3 million in 2023 and €41 million in 2024, prompting questions over transfer pricing arrangements and management decisions.

    The inquiry further seeks information regarding four luxury properties in Austria, including Villa Schwarzenfels in Maria-Wörth, two villas in Vienna and another in Pressbaum, to determine whether they are connected to Zhevago and to establish the origin of the funds used for their acquisition.

    The investigation comes as Ferrexpo faces financial pressures. According to the company, it held approximately US$20 million in cash as of April 2026, while awaiting US$90.3 million in outstanding VAT refunds from the Ukrainian government. The company has announced plans to raise at least US$100 million through a share issue, sell the vessel Iron Destiny for US$7.7 million, implement cost reductions and has warned of potential insolvency risks if its financial position does not improve.

  • Ukraine Creates Working Group to Address Challenges at Ferrexpo’s Poltava Mining

    Ukraine Creates Working Group to Address Challenges at Ferrexpo’s Poltava Mining

    Ukraine’s Verkhovna Rada Committee on Economic Development has established a working group to address key operational challenges facing mining companies, with the situation at the Poltava Mining and Processing Plant — part of the Ferrexpo group — becoming the first issue under review.

    According to Member of Parliament Oleksiy Movchan, the group held its initial meeting online with participation from representatives of the Ministry of Economy, the National Bank of Ukraine, the Ministry of Justice, the State Tax Service, industry associations, and management of the Poltava and Yeristovo mining and processing plants.

    Several major issues affecting the Poltava operation were discussed, including electricity shortages and high power costs, blocked VAT refunds, and outstanding foreign currency payments owed by the parent company.

    One of the most pressing challenges is the non-refund of value-added tax due to sanctions imposed on the company’s ultimate beneficiary, businessman Kostyantyn Zhevago.

    Dmytro Mospan, manager of legal support for financial activities at Poltava Mining and Processing Plant, said more than UAH 3 billion in VAT refunds remains blocked for the company.

    According to Mospan, the lack of access to these funds has forced the company to reduce the working week, cut social programmes, lower maintenance spending and scale back mining operations.

    The State Tax Service said the situation is governed strictly by the Tax Code of Ukraine. Under Article 200.4, VAT refunds cannot be issued to taxpayers whose ownership structure includes individuals under sanctions.

    Even in cases where courts have ruled in favour of the company, payments remain blocked. Funds are currently held by the State Treasury pending enforcement of court decisions but cannot be transferred due to provisions under Article 200.12 of the tax code.

    One court ruling alone has frozen approximately UAH 230 million related to the plant.

    The working group plans to further examine the company’s ownership structure at future meetings following additional reports from tax authorities.

    Energy supply is another major challenge for the enterprise. Company representatives said limited availability of electricity and high power prices are making operations increasingly unprofitable. However, officials noted that electricity costs are a broader issue affecting Ukraine’s entire mining and metallurgical sector.

    The matter is expected to be discussed further with the Ministry of Energy during upcoming sessions of the working group.

    Movchan also said Ferrexpo AG owes the Poltava operation more than $500 million in unpaid foreign currency proceeds.

    “This debt has been confirmed by international arbitration decisions and the figures have been verified by representatives of the National Bank,” he said.

    The issue will also be examined in subsequent meetings.

    Earlier this month, Ferrexpo announced it had restarted pellet production at the Poltava Mining and Processing Plant after suspending operations in January 2026. The restart was made possible by improvements in electricity supply and lower energy costs.

    According to GMK Center, Ukraine’s iron ore exports fell by 8% in 2025 compared with the previous year, totaling 30.99 million tonnes. In January–February 2026 exports declined even further, dropping 40.9% year-on-year to 3.31 million tonnes, the lowest level recorded since 2023.

  • 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.

  • Bankruptcy Proceedings Opened Against Poltava Mining Plant as Ferrexpo Shares Slide

    Bankruptcy Proceedings Opened Against Poltava Mining Plant as Ferrexpo Shares Slide

    Ukraine’s Economic Court of Poltava Oblast has opened bankruptcy proceedings against the Poltava Mining and Processing Plant (PGZK), triggering a sharp market reaction and renewed investor concerns surrounding iron ore producer Ferrexpo.

    The company confirmed the development in a statement to the London Stock Exchange on February 24, noting that the court initiated proceedings before a final ruling had been issued by Ukraine’s Supreme Court. Following the announcement, Ferrexpo’s share price fell by 28 percent.

    The bankruptcy case was initiated by Maxi Capital Group, which secured a court judgment in January 2025 ordering PGZK to repay UAH 4.7 billion. The dispute stems from a financial claim originally linked to the failed Finance and Credit bank, where PGZK acted as a guarantor. Maxi Capital acquired the claim in 2020.

    PGZK maintains that the debt had already been settled, citing the write-off of funds in August 2015 and their subsequent return to company accounts in July 2019, arguments reflected in earlier court rulings. The matter remains under consideration by the Supreme Court, despite bankruptcy proceedings now formally underway.

    Operations at the mining and processing plant continue uninterrupted, but the legal escalation has increased uncertainty for investors and lenders. PGZK is one of Ukraine’s largest exporters of iron ore pellets to European markets, meaning prolonged litigation could affect financing conditions, payment stability and regional export flows.

    Ferrexpo stated that PGZK intends to appeal the court’s decision within the statutory ten-day period. However, under Ukrainian law, filing an appeal does not suspend bankruptcy procedures, leaving the timeline and potential consequences difficult to predict.

    The case also adds to broader scrutiny surrounding Ferrexpo and its controlling shareholder, businessman Kostyantyn Zhevago. Earlier in 2025, bankruptcy proceedings were opened against pharmaceutical group Arterium, also associated with Zhevago, while PGZK’s board leadership has faced investigations by law enforcement authorities since 2023.

    Market analysts note that even without operational disruption, reputational risks and declining market capitalisation could complicate access to investment capital. The outcome of ongoing appeals and Supreme Court decisions will likely determine whether the dispute remains a legal challenge or evolves into a broader economic risk affecting employment, exports and investor confidence.

  • Binding Solutions and Mitsui Partner on Low-Carbon Iron Ore Pellets in Australia’s Pilbara

    Binding Solutions and Mitsui Partner on Low-Carbon Iron Ore Pellets in Australia’s Pilbara

    UK-based Binding Solutions has entered into an agreement with a subsidiary of Mitsui & Co to develop low-carbon iron ore pellets using material from Western Australia’s Pilbara region, one of the world’s largest iron ore hubs.

    Under a newly signed memorandum of understanding with Mitsui Iron Ore Development, Binding Solutions will apply its proprietary cold agglomeration technology to convert lower-grade iron ore fines into pellets. The company says the process significantly reduces energy use and carbon dioxide emissions compared with conventional pelletizing methods, which rely on high-temperature heat treatment.

    Binding Solutions chief executive Jon Stewart said the work already carried out with Mitsui’s unit demonstrates strong commercial potential. According to Stewart, the ability to upgrade Pilbara iron ore fines into premium pellets opens up a sizeable new market opportunity, particularly as steelmakers seek cleaner feedstock options.

    The preliminary agreement focuses on utilizing fines that would otherwise require sintering, a highly energy-intensive and polluting step, before they can be used in traditional blast furnaces. Pellets produced via Binding Solutions’ method can bypass this stage and are also suitable for electric arc furnaces, which are increasingly being adopted by steel producers aiming to lower emissions.

    Mitsui holds iron ore interests in the Pilbara through partnerships with major miners including BHP and Rio Tinto. In 2024, the Japanese trading house agreed to acquire a 40% stake in Rio Tinto’s Rhodes Ridge iron ore project in Western Australia for $5.34 billion.

    Binding Solutions has previously completed industrial trials of its technology with British Steel and Germany’s Salzgitter and is now working toward the development of a full-scale industrial plant to commercialize the process.