Ferrexpo increases integrated pellet capacity 14% to 12 mmt

17 July 2020

Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN) has launched concentrator section 9 at Ferrexpo Poltava Mining, its main Ukrainian asset, according to a July 16 report by Interfax-Ukraine, citing a company press release.

 

The total CapEx amounted to more than USD 100 mln and the new concentrator will add 2 mmt per year to Ferrexpo’s total concentrate capacity, bringing it to 15 mmt per year, according to the release, as reported by Interfax-Ukraine.

 

Dmytro Khoroshun: Following the completion of this investment project that was started in 2017, Ferrexpo has an integrated (relying fully on concentrate produced internally) capacity of 12 mmt of pellets per year (32.9 kt per day). The new concentrator section 9 will produce enough concentrate for the production of about 1.5 mmt of pellets per year, or 14% of the 10.5 mmt per year integrated pellet capacity Ferrexpo had before the launch of concentrator section 9.

 

Recall, in 1H20, Ferrexpo produced 5.6 mmt of pellets, or 30.8 kt per day.

 

We maintain our expectation for Ferrexpo’s 2020 production volume at 10.8-11.5 mmt (29.5-31.3 kt per day), or 3-9% more yoy. The recent production volume guidance from the company was for a 9.3% yoy increase to 11.5 mmt (31.4 kt per day) in 2020.

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