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Ferrexpo launches second pelletizing line, mulling use of generators to avoid fall in production due to power outage

KYIV. March 15 (Interfax-Ukraine) – Ferrexpo mining company with assets in Ukraine at the end of February this year launched the second pelletizing line out of four installed at PrJSC Poltava Mining and Processing Plant (PGOK).

According to the company’s annual report, the launch of the second pelletizing line became possible after the stabilization of the Ukrainian power grid.

“The group intends to continue production on one or two pelletizing lines in the coming months, assuming that the war in Ukraine does not worsen the working environment,” the report states.

At the same time, it is recalled that in 2022 the production of iron ore pellets was 6.1 million tonnes, having decreased by 46% compared to the previous year (11.2 million tonnes) due to the war in Ukraine. Shipment to customers was carried out throughout the past year, despite the shortage of electricity in the fourth quarter.

Iron ore sales last year amounted to 6.2 million tonnes (in 2021 – 11.4 million tonnes).

“Investments continue to complete the first stage of the group’s press-filtration complex, which will improve the quality of pellets and reduce the consumption of natural gas per tonne of product, as soon as production returns to designed capacity,” the company notes.

The cost of production of $83.3/tonne reflects lower production in 2022, higher prices for key consumables and restrictions due to the war.