---
title: "Ferrexpo Halts Ukraine Iron Ore Production Amid War Disruption"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-08-08T08:33:51+00:00"
modified: "2026-08-08T08:33:51+00:00"
date: 2026-08-08
canonical: "https://stockmark.it/ferrexpos-ukraine-shutdown-deepens-fight-for-survival/"
category: "Mining"
categories: ["Mining"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/08/ferrexpo-halts-ukraine-iron-ore-production-amid-war.webp?fit=1536%2C1024&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Ferrexpo Halts Ukraine Iron Ore Production Amid War Disruption

**Published:** August 8, 2026
**Author:** Stockmark.IT Website
**Categories:** Mining
**Featured image:** ![Ferrexpo Halts Ukraine Iron Ore Production Amid War Disruption](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/08/ferrexpo-halts-ukraine-iron-ore-production-amid-war.webp?fit=1536%2C1024&quality=80&ssl=1)

---

Switzerland-based Ferrexpo has suspended iron ore production at its Ukrainian facilities following Russian attacks that have severed critical Black Sea export routes, forcing the miner to seek fresh funding before operations can resume. The shutdown encompasses the company’s mines and pellet plant located near Horishni Plavni in central Ukraine, approximately 280 kilometres southeast of Kyiv, as confirmed by a regulatory filing released on Tuesday.

While Ferrexpo maintains the ability to supply European steelmakers from existing stockpiles, restarting operations is contingent upon securing additional working capital. The company stated that without new funding, its accessible cash reserves are projected to last only until mid-September. This halt transforms an ongoing wartime shipping disruption into a significant threat for one of Europe’s primary suppliers of high-grade iron ore pellets. Prior to Russia’s invasion in 2022, Ferrexpo was the world’s third-largest exporter of such pellets, which assist steelmakers in reducing emissions relative to lower-grade feedstock.

Trading in Ferrexpo shares on the London Stock Exchange has been suspended since May at a price of 28.58 pence after the firm missed its deadline for publishing audited accounts for 2025. The company explained that it could not finalise these financial reports until sufficient funding was secured to demonstrate business continuity.

Security incidents have further complicated logistics, including an attack by Russian drones on a third-party vessel carrying Ferrexpo pellets in Black Sea waters late last month. This incident resulted in the death of one crew member and left 55,000 tonnes of direct-reduction-grade pellets bound for Middle Eastern customers unaccounted for until inspection could occur at a nearby port.

The affected shipment was part of an inventory earmarked for sale totaling 189,000 tonnes. Ferrexpo valued the production and delivery costs of this stockpile at approximately $20 million. Attacks around Ukrainian ports have caused shipowners to cancel bookings, derailing plans to increase Black Sea shipments to the Middle East during the second half of the year.

Although some products can still be moved west via rail and barge for European customers, these routes are limited by capacity. Ferrexpo began seeking at least $100 million in equity financing in April to fund eighteen months of reduced operations but had only $17 million in accessible cash as recently as mid-April.

Compounding financial pressures, Ukraine’s tax authorities have withheld value-added tax refunds from the company’s subsidiaries since March last year. At the end of March, Ukraine owed Ferrexpo approximately $90.3 million in refunds, tying up essential capital while wartime energy and transport costs remained elevated. Production had already declined sharply before this latest halt, with output falling 54% to 1.56 million tonnes in the first half of the year.

Ferrexpo Poltava Mining, its main operating unit in Ukraine, faces separate bankruptcy proceedings over a disputed civil claim. A local court appointed an insolvency manager in February despite no ruling from Ukraine’s Supreme Court on the underlying dispute, leaving Ferrexpo at risk of losing control of the subsidiary.

---

**Original URL:** https://stockmark.it/ferrexpos-ukraine-shutdown-deepens-fight-for-survival/
*Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*