Ferrexpo fined USD 30 mln for illegal waste disposal

Ferrexpo Yeristovo Mining (FYM), a subsidiary of
Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN), was fined UAH
786 mln (USD 30 mln) for illegal waste disposal, according to a Nov. 2 press
release by the State Environmental Inspectorate (SEI) of Ukraine.

FYM did not have the proper documents for 160 ha of
land on which it stored waste, the SEI said citing its head Àndrii Malovanyi,
adding that it will go to court if FYM does not pay the fine voluntarily.

In 2020, the SEI developed changes to its methodology
for calculating damages and fines for land pollution, the release said. The
changes took effect in early 2021 and resulted in an increase of the damage
estimates and fines, according to Malovanyi.

In September, the SEI fined ArcelorMittal Kryvyi Rih
(AMKR), a Ukrainian steelmaker and iron ore miner, UAH 457 mln (USD 17 mln),
also qualifying AMKR’s waste storage on some land as illegal because the company
did not have the proper documents.

Dmytro Khoroshun: If Ferrexpo
is at fault, it is likely for improper paperwork rather than for actual
pollution, we think.

Nevertheless, the company will have to pay the fine
unless it successfully challenges the SEI’s decision in court.