MINEX Forum

Tag: Iron ore

  • 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 .

  • Canadian Mining Company Black Iron Advances Iron Ore Project in Ukraine

    Canadian Mining Company Black Iron Advances Iron Ore Project in Ukraine

    Canadian mining company Black Iron Inc. has initiated the process of obtaining permits for iron ore extraction under its Shimanovskoye Iron Ore Project in Kryvyi Rih, Ukraine. According to documents obtained by Interfax-Ukraine, the company’s subsidiary, Shimanovskoye Steel LLC, has applied for authorization to mine iron ore from the northern section of the Shimanovskoye open pit.

    The proposed open-pit mine will span 660 by 390 meters and reach a depth of 80 meters, with plans to extract 4.5 million tons of ore annually. The total overburden volume is estimated at 5.13 million cubic meters, including 1.31 million cubic meters of ore. The project will operate year-round, leveraging nearby infrastructure, including rail, power, and port facilities.

    Black Iron has prioritized this venture through an investment agreement with the Ukrainian government. A critical hurdle remains obtaining a land plot managed by Ukraine’s Ministry of Defense, though discussions have progressed, and a preliminary compensation amount has been agreed upon.

    The company is also exploring additional potential projects and has a history of partnerships, including a 2013 agreement with Ukraine’s Metinvest group. While Metinvest later withdrew from the project, Black Iron continued development, citing the region’s rich resources and existing mining operations, such as ArcelorMittal’s iron ore complex, as key advantages.

    The Shimanovskoye Iron Ore Project is designed to produce premium iron ore with an iron content above 68%. Initial capital investment is estimated at $452 million for the first phase and $364 million for the second, with plans to build a plant capable of producing up to 8 million tons annually.

  • Qarmet to Invest $1.48 Billion in Iron Ore and Coal Projects by 2025

    Qarmet to Invest $1.48 Billion in Iron Ore and Coal Projects by 2025

    Over the next few years, the company plans to invest $1.48 billion in its iron ore and coal departments. Of this amount, $500 million will be allocated to the development of the iron ore division, and $978 million to the coal division. This was announced following President Kassym-Jomart Tokayev‘s visit to the metallurgical plant.

    The official website of the President of the Republic reported that the plant’s management had already implemented several production upgrades and shared future plans. Since the plant was transferred to a new investor, a series of major projects worth over $3.5 billion have been initiated.

    The 2024 plant renovation program includes more than a hundred facilities and the replacement of 50,000 square meters of roofing. Additionally, sanitary and household facilities will be repaired.

    Kassym-Jomart Tokayev was shown the operation of Converter Shop No. 2 and the Continuous Casting Machines. Qarmet intends to further modernize the control systems and hydraulics in this section.

    The company has launched a “5-9-5” program: 5 million tons of steel, 9 million tons of coal, and 5 million tons of iron ore concentrate annually. As a result, by 2025, the metallurgical plant’s capacity will increase by 66% compared to last year.

    In 2023, coal mining was carried out at only three mines; now, Qarmet operates eight mines in Kazakhstan. Next year, all facilities will be equipped with positioning systems.

    President Tokayev summarized that the authorities made the “right decision” by inviting a Kazakh investor to manage the company. He instructed to “restore the former glory” of the metallurgical plant.

  • TAKRAF Group secures major project award with SNIM for F´Derick iron ore project in Mauritania

    TAKRAF Group secures major project award with SNIM for F´Derick iron ore project in Mauritania

    TAKRAF Group, a world leader for innovative technological solutions for the mining and associated industries, is happy to announce the signing of a major contract with Societe Nationale Industrielle et Miniere (SNIM) for the supply of a complete iron ore crushing, screening, and material handling system, along with a train loading station for the F’Derick project in Mauritania.

    The F’Derick iron ore deposit is part of SNIM’s iron ore complex in Mauritania. With current production of approximately 12 million tons per annum, SNIM aims to increase this to 18 million tons through the development of the F’Derick project, thereby contributing to the country’s iron ore production.

    The contract, signed at the end of 2023, marks a key milestone as SNIM begins development work on site. An inauguration ceremony was held in the presence of Mauritanian President of State Mohamed Ould Ghazouani, underscoring the importance of this collaboration.

    Highlights of TAKRAF’s scope of supply include: 
    Lot 1

    • Primary crushing plant
    • Apron feeder
    • Belt conveyor CV-1
    • Secondary crushing plant with pre-screening
    • Belt conveyor CV-2 and transfer tower TT-1
    • Required auxiliary systems and accessories

    Lot 2

    • Belt conveyor CV-5
    • Train loading (loadout) station
    • Required auxiliary systems and accessories
  • Ukrainian Iron Ore Industry Shifts Towards High-Quality Concentrate Production

    Ukrainian Iron Ore Industry Shifts Towards High-Quality Concentrate Production

    Amidst the global push for green steel production, Ukrainian mining and processing plants are urged to enhance the quality of iron ore concentrate, transitioning to higher iron content levels, reports UAprom. This call to action was underscored during the “Iron Ore Deposits of Ukraine: Current Problems and Development Prospects” international conference held at the Taras Shevchenko National University of Kyiv on March 21-22, where leading scientists and industry representatives convened.

    Yelena Belan, an expert on iron ore production at Metinvest Group, emphasized the importance of meeting market quality requirements to avoid losing opportunities for product sales and enterprise capacity.

    Ensuring consistent high-quality products with elevated iron content positions Ukrainian enterprises to lead the green modernization of Europe and integrate into the global green metallurgy system.

    Despite the use of low-grade ores with approximately 30% total iron content, Ukrainian iron ore industry relies on extensive processing methods such as crushing, grinding, magnetic separation, flotation, and dewatering to upgrade these ores. The resultant magnetite concentrate with 64-68% iron content undergoes fundamental qualitative changes, making it significantly different from the original ore, noted experts from the Institute of Geology at Taras Shevchenko National University of Kyiv.

    Concerns regarding the tax treatment of deep processing were also addressed, with experts asserting that magnetite concentrate represents a distinct product compared to the original ore. This sentiment was echoed by scientists from the Semenenko Institute of Geochemistry, Mineralogy, and Ore Formation of the National Academy of Sciences of Ukraine, emphasizing the need to reconsider rent taxation policies.

    Ukraine witnessed a substantial reduction in iron ore exports in 2023, down by 26% compared to 2022, with raw material exports plummeting by 60% compared to pre-war 2021 levels. Revenues from iron ore exports for Ukrainian companies also experienced a significant decline.

    Major iron ore producers in Ukraine include Ingulets GOK, Kryvyi Rih Iron Ore Plant, Poltava Mining, Northern GOK, Central GOK, Southern GOK, ArcelorMittal Kryvyi Rih, and Sukha Balka.

  • Kazakhstan’s Iron Ore Production Surges in February 2024

    Kazakhstan’s Iron Ore Production Surges in February 2024

    Kazakhstan’s iron ore extraction witnessed a significant surge in the second month of this year, with over 4.187 million tons extracted, marking a 37.5% increase compared to February 2023, according to data provided by the National Statistics Bureau. Production of iron ore agglomerate also experienced a notable uptick, growing by 44.8% for the month. However, in comparison to January 2024, it declined from 475.5 to 456.1 thousand tons. Positive dynamics were also observed in the production of iron ore concentrates, reaching 5.699 million tons in February, marking a 15.9% and 12.3% increase compared to the same month last year and the preceding month of this year, respectively. Additionally, Kazakh mining plants saw a significant rise in the production of non-agglomerated iron ore, with 2.661 million tons processed in February, a 44.9% surge compared to the previous year. The production of iron ore pellets also intensified, reaching 474.8 thousand tons, a 38.8% increase compared to 2023, albeit failing to surpass January’s figures, showing a 2.2% decline. Anticipation is high for a noticeable increase in iron ore extraction following the commencement of operations at the Lomonosovskoye deposit in the Kostanay region, slated for 2025.