MINEX Forum

Tag: Iron ore

  • SSGPO Secures $400 Million Syndicated Loan for Strategic Expansion

    SSGPO Secures $400 Million Syndicated Loan for Strategic Expansion

    Sokolovsko-Sarbayskoye Mining Production Association (SSGPO), part of the Eurasian Resources Group (ERG), has opened a new syndicated credit line worth up to $400 million with other firms under common control, according to its recently published financial report. The agreement was finalised in February 2025 and is set to run until 2029. The document states that the interest rate on the loans, denominated in US dollars and euros, will be a market rate.

    This latest move follows a similar arrangement made in 2024, when SSGPO signed a syndicated credit line agreement with affiliated companies for up to $300 million, with a repayment deadline of the end of 2028. Furthermore, SSGPO acts as a co-guarantor for ERG’s loans, alongside other subsidiaries within the group. As part of the new credit line, SSGPO provided a loan of $6 million to an unnamed company under common control in June 2025.

    SSGPO’s core business is the extraction and processing of iron ore. The company holds a number of iron ore mining contracts in the Kostanay region, which are due to expire in 2033, 2035, and 2040. In addition, SSGPO is currently constructing a hot-briquetted iron plant in Rudny, which is scheduled to commence operations in late 2027. The company’s financial performance for 2024 showed an increase in revenue to 424.1 billion tenge from 389.6 billion tenge in the previous year, although it recorded a loss of 69.3 billion tenge, a slight improvement on the 71.4 billion tenge loss in 2023. The sole owner of SSGPO is ERG Iron Ore Holding B.V., which is part of the broader ERG group. The Eurasian Resources Group itself is co-owned by the Ministry of Finance of the Republic of Kazakhstan, which holds a 40% stake, with the remaining shares divided between the heirs of Alexander Mashkevich and the Ibragimov family, each with 20.7%, and Patokh Shodiev, who holds 18.6%. The Ibragimov family is listed by Forbes as the seventh wealthiest in Kazakhstan, with a net worth of $2.06 billion.

  • Ferrexpo Slashes Iron Ore Output by 40% Amid Ukraine VAT Refund Freeze

    Ferrexpo Slashes Iron Ore Output by 40% Amid Ukraine VAT Refund Freeze

    Ferrexpo, the London-listed iron ore producer with major operations in Ukraine, reported a steep 40% drop in second-quarter production after a suspension of value-added tax (VAT) refunds crippled its liquidity and forced the company to scale back operations.

    In a statement on Monday, Ferrexpo revealed that total commercial production fell to 1.3 million tonnes for the quarter ending June, down from 2.1 million tonnes in Q1. The company attributed the decline to a $31 million VAT refund freeze by Ukrainian authorities, covering the period from January to April.

    The company’s Poltava Mining unit, already under pressure from potential bankruptcy proceedings, has responded by placing approximately 37% of its workforce on reduced hours or furlough and cutting back on procurement of goods and services required for production.

    Ferrexpo said the halt in VAT payments is linked to personal sanctions on its largest shareholder, Kostiantyn Zhevago, who was arrested in 2022 on embezzlement charges. Although the company itself is not under sanctions, the indirect impact has been severe, hampering its ability to operate in Ukraine’s strained financial environment.

    The miner warned that these constraints could continue to impact output unless the financial pressure eases.

  • Uzbekistan and Limaomaoli Metal Company Discuss Syurenota Iron Ore Project

    Uzbekistan and Limaomaoli Metal Company Discuss Syurenota Iron Ore Project

    On March 14, Uzbekistan’s Deputy Minister of Investments, Industry, and Trade, Ilzat Kasymov, met with Song Liping, CEO of Limaomaoli Metal Company, to discuss the development of the Syurenota iron ore deposit in the Tashkent region.

    The meeting covered the project’s progress, challenges faced by the investors, and potential areas for further cooperation. Representatives of the Chinese company expressed appreciation for the support received and reaffirmed their commitment to strengthening the partnership.

    Founded in November 2019, Limaomaoli Metal Company specializes in mineral exploration and iron ore extraction.

  • Ukraine’s Mineral Wealth Attracts Global Interest, Valued at $26 Trillion

    Ukraine’s Mineral Wealth Attracts Global Interest, Valued at $26 Trillion

    Ukraine’s vast mineral resources, estimated to be worth $26 trillion, have drawn significant international attention. The country’s subsoil holds approximately 5% of the world’s total mineral resources, including rare earth metals, which have sparked particular interest from the new US president.

    Ukraine boasts over 20,000 mineral deposits of at least 20 types, making it a key player in the global mining industry. Among its most valuable resources are iron ore, titanium, manganese, uranium, rare earth metals, graphite, lithium, gallium, copper, and zinc.

    The Kryvyi Rih Basin is home to Ukraine’s largest iron ore reserves, estimated at 27.4 billion tons, accounting for over 90% of the country’s production. Ukraine also holds the largest titanium reservesin Europe, representing about 7% of the global total, a critical resource for industries like aerospaceand medical equipment.

    In addition, Ukraine is a global leader in manganese reserves, with significant deposits in the Nikopol Basin. The country also possesses 2.3% of the world’s uranium reserves and a variety of rare earth metals essential for nuclear energy and advanced technologies.

    Ukraine ranks among the top five countries globally for natural graphite reserves, with 18 million tonsof confirmed deposits and 100 million tons of potential resources. The country is also a major supplier of lithium, with estimated reserves of 500,000 tons, crucial for battery production.

    Furthermore, Ukraine is the fifth-largest producer of gallium, a vital component in semiconductor manufacturing, and a significant producer of copper (4th in Europe) and zinc (6th in Europe).

  • LKAB to Replace Aging Sorting Plant in Vitåfors

    LKAB to Replace Aging Sorting Plant in Vitåfors

    Swedish mining company LKAB has announced plans to replace its aging sorting plant in Vitåfors, which has reached the end of its service life. The new facility will be constructed adjacent to the existing plant on a 24,000-square-meter site, improving efficiency and accommodating larger volumes of iron ore processing.

    “The sorting plant has served us well over the years, but it no longer meets modern operational requirements in terms of work environment and technology. Additionally, we need to handle greater production volumes,” said Monika Sammelin, Area Manager at LKAB.

    The project will begin with excavation work to create space for the new plant, followed by foundation engineering and groundwork preparations. A construction contract will be signed when building work officially begins.

    This initiative follows an earlier agreement in June 2024, when LKAB partnered with NCC to build a direct reduction plant and related infrastructure in Malmberget. The companies are now expanding their collaboration in the Swedish Ore Fields.

    “By being involved from an early stage, we can provide both resources and specialist expertise to ensure an efficient project implementation. We are pleased to support LKAB’s continued growth,” said Helena Hed, Head of NCC Green Industry Transformation.

  • Ferrexpo Shares Plunge Amid $3.8 Billion Civil Claim in Ukraine

    Ferrexpo Shares Plunge Amid $3.8 Billion Civil Claim in Ukraine

    Shares of Ferrexpo PLC, a London-listed iron ore producer, dropped as much as 51% following the announcement of a $3.8 billion civil claim filed against its Ukrainian subsidiary, Ferrexpo Poltava Mining. The claim, issued by Ukrainian authorities, accuses the company of illegal mining and environmental damage.

    After experiencing its largest intraday decline on record, Ferrexpo pared its losses to a 23% drop. The company issued a statement denying the allegations, noting that the current accusations have “transformed” from prior claims of illegal waste product sales. Ferrexpo confirmed that its Ukrainian subsidiary intends to vigorously defend its position in court.

    In January, the company addressed earlier accusations made by Ukraine’s Prosecutor General’s Office against four senior managers concerning the sale of waste products. Ferrexpo argued that these materials were not a separate mineral resource and had been sold for years under state inspections until September 2021.

    Ferrexpo’s Poltava mine, located in central Ukraine, is its largest operation and critical to its business. Before the Russian invasion in 2022, Ferrexpo ranked as the world’s third-largest exporter of iron ore pellets.

    The legal battle in Ukraine, coupled with the ongoing war, presents significant challenges for Ferrexpo as it works to defend its largest subsidiary and stabilize investor confidence.

  • Metinvest Announces 2024 Operational Results: Steel and Mining Performance Highlights

    Metinvest Announces 2024 Operational Results: Steel and Mining Performance Highlights

    Metinvest B.V., the parent company of a leading international vertically integrated group of steel and mining companies, has released its operational results for the fourth quarter and the full year ending 31 December 2024.

    In the fourth quarter of 2024, the Group produced 489 thousand tons (kt) of crude steel, reflecting a 14% decrease compared to the previous quarter’s output of 568 kt. Despite this quarterly decline, the annual crude steel production for 2024 reached 2,099 kt, marking a 4% increase from the 2,025 ktproduced in 2023.

    The Group’s iron ore concentrate production showed a positive trend, with 3,493 kt produced in the fourth quarter, a 4% rise from the third quarter’s 3,347 kt. For the full year, iron ore concentrate output surged to 15,733 kt, a significant 42% increase compared to 11,092 kt in 2023.

    However, coking coal concentrate production experienced a decline, with 1,057 kt produced in the fourth quarter, down 7% from the previous quarter’s 1,135 kt. Annually, coking coal concentrate output fell to 4,277 kt, a 22% decrease from 5,455 kt in 2023.

    These results highlight the Group’s resilience in iron ore production despite challenges in steel and coking coal output. Metinvest continues to play a pivotal role in the global steel and mining sectors, adapting to market dynamics and maintaining a strong operational presence.

  • Ferrexpo shares plummet 51% following $3.8 billion Ukrainian civil claim

    Ferrexpo shares plummet 51% following $3.8 billion Ukrainian civil claim

    Ferrexpo’s shares experienced a sharp decline, falling by as much as 51%, after the company announced that its Ukrainian subsidiary, Ferrexpo Poltava Mining (FPM), is facing a 157 billion Ukrainian hryvnias ($3.8 billion) civil claim in Ukraine. The claim was made due to allegations of illegal mining and the sale of subsoil, which has purportedly caused environmental damage.

    Ferrexpo, a Swiss-based iron ore producer listed in London, faced its most significant intraday drop on record, before recovering some losses to 23%. Previously, in mid-January, Ferrexpo responded to allegations made by the Prosecutor General’s Office of Ukraine against four senior managers of FPM, which concerned suspicions of illegal mining and sale of waste products.

    According to Ferrexpo, these minerals cannot be classified as a separate mineral resource. Furthermore, the company has stated that waste products have been sold for several years, and all activities were consistently inspected by the state. FPM plans to rigorously defend itself in the Ukrainian courts.

    Ferrexpo’s Poltava operation, their largest iron ore mine, is located in central Ukraine. Prior to the Russian invasion of Ukraine in 2022, Ferrexpo PLC was the world’s third-largest exporter of iron ore pellets. This is not the first time Ferrexpo has faced controversy related to its Ukrainian operations, further highlighting the delicate nature of the situation and the potential challenges to overcome.

  • Ukraine: A Potential Key Player in the Global Critical Raw Materials Race?

    Ukraine: A Potential Key Player in the Global Critical Raw Materials Race?

    In a recent statement, U.S. Secretary of State Marco Rubio provided a clear outlook on the future of American policy regarding critical raw materials. As global supply chains for these materials continue to shift, Ukraine’s vast reserves of key minerals could play a pivotal role in reshaping the global balance of power, particularly in the ongoing confrontation between the U.S. and China.

    Rubio highlighted several critical materials essential for advanced technology, renewable energy, and national security, including neodymium, dysprosium, lithium, cobalt, nickel, and titanium. Remarkably, Ukraine is home to abundant reserves of these very materials—and more. With its substantial deposits of germanium and gallium, Ukraine is positioned to be a critical player in the global supply of strategic resources.

    A Treasure Trove of Critical Materials

    • Titanium Ore (Ilmenite): Ukraine ranks 11th in the world for ilmenite reserves, found in the Irshanske, Byrzulivske, and Malyshevske deposits across the Zhytomyr, Kirovohrad, and Dnipropetrovsk regions. Titanium is vital for aerospace, defense, and high-tech manufacturing.
    • Lithium: As a key component in batteries, particularly for electric vehicles and renewable energy storage, Ukraine holds 1% of the world’s lithium reserves—equivalent to 30% of Europe’s supply. Major deposits can be found in Polokhivske (Kirovohrad region) and Balka Kruta (Zaporizhzhia region). The strategic importance of lithium was recently highlighted by China’s attempts to use the resource as leverage in international relations.
    • Germanium and Gallium: Crucial for electronics and telecommunications, these materials are abundant in Ukraine’s coal and lignite deposits in the Donetsk and Lviv-Volyn basins. Before the full-scale war, Ukraine was the world’s third-largest exporter of germanium, although exports have been halted due to the ongoing conflict. Ukraine’s reserves of these rare metals remain a critical asset for global tech industries.
    • Rare Earth Elements (Neodymium and Dysprosium): Located in the Zhytomyr region, these elements are indispensable in the production of magnets for electric vehicles, wind turbines, and high-tech equipment.
    • Nickel and Cobalt: Essential for battery production, Ukraine’s nickel and cobalt reserves are also noteworthy, found in deposits like Devladivske (Dnipropetrovsk region), Lypovenkivske (Kirovohrad region), and Dereniukhivske (Mykolaiv region). While the reserves are smaller compared to other countries, they still contribute to Ukraine’s strategic importance.
    • Manganese and Iron: Ukraine is a major global player in manganese and iron ore production, with significant deposits in the Nikopol Manganese Basin and the Kryvyi Rih Iron Ore Deposit. These resources are fundamental to the global steel and metallurgy industries.

    Ukraine’s Growing Role in Global Supply Chains

    As the global supply chain for critical raw materials becomes increasingly volatile, especially with rising tensions between the U.S. and China, Ukraine has the potential to become a key partner for the U.S. in securing access to these vital resources. With its diverse array of minerals and metals, the country offers not only essential raw materials but also strategic geopolitical leverage in a rapidly changing world order.

    The country’s natural resources, coupled with its strategic location in Europe, make it a valuable partner for countries looking to diversify their supply chains and reduce reliance on China.

    By prioritising partnerships with the U.S. and other nations, Ukraine can play a pivotal role in shaping the future of critical materials and ensure its place as a key player in the global economy.

    The Road Ahead

    The ongoing geopolitical shifts present an opportunity for Ukraine to position itself as a leading supplier of critical materials. With strategic investments in its mining and extraction sectors, Ukraine can not only boost its economy but also secure its place in the new global order. Now more than ever, the world needs Ukraine’s resources, and Ukraine is ready to take center stage.

  • Auction for 26 Mineral Deposits in Kazakhstan

    Auction for 26 Mineral Deposits in Kazakhstan

    Online auctions for 26 mineral deposits will take place on January 29, 2025, on the e-qazyna.kz platform in Kazakhstan. Interested investors can bid on 26 mineral deposits, including 10 deposits of precious metals, 2 polymetallic deposits, 2 gemstone deposits, and several coal and black metal ore deposits.

    The Ministry of Industry and Infrastructure Development of Kazakhstan has announced a list of available plots for obtaining mining licenses. The starting bid for most deposits is 1,846 million tenge, with the exception of the Burabay-Zhalgyzagash polymetallic deposit in Kyzylorda region, which has a minimum starting bid of 30,362 million tenge.

    Some of the notable mineral deposits up for auction include:

    • Aktubinskaya Severnaya (4.19 km2) and Dalabaevskoye (3.82 km2) deposits of precious metals in Aktubinskaya and Zhetysu regions, respectively.
    • Aulie-Yuzhnopriishminskaya (2.51 km2) deposit of precious metals in the North-Kazakhstan region.
    • Burabay-Zhalgyzagash and Kysyl-Espe polymetallic deposits.
    • Priozernoye and Kaynar gemstone deposits.
    • Kuletskoye deposit of mica schists, Ushbulak asbestos deposit, and Aurtash deposit of celestine and barite-celestine ores.
    • Kendyrlykskoye, Bogembaevskoye, and Taldykul coal deposits, as well as the 1st Dubovskaya field.
    • East Karazhal, West Kamys, and Yesimzhal manganese ore deposits, and Masalskoye iron ore deposit, which also contains titanium.

    To participate in the auction, interested parties must register on the e-qazyna.kz platform by 15 January .