Ferrexpo Poltava Mining

Ferrexpo Poltava Mining (FPM) specializes in production of iron ore pellets. It is a part of Ferrexpo.

FPM is an integrated company with facilities for mining of crude ore to production of iron ore pellets. The company processes iron ore and manufactures iron ore concentrate and pellets at crushing and benefication plants and iron ore pellets shop.

Iron ore is mined by the open-pit method at Gorishne-Plavninske-Lavrykivske deposit (reserves of ferruginous quartzite exceed 1 billion tons). According to the international classification JORC, the company’s proved and estimated reserves reach 703 million tons.

FPM buys part of iron ore concentrate for production of pellets from third-party companies, since its beneficiation capacity is not enough to fully meet its own needs for iron ore concentrate. Also, FPM processes iron ore extracted at Ferrexpo Yeristovo Mining according to a give-and-take model.

All pellets produced by FPM are exported.

Location: Gorishni Plavni, Poltava oblast, Ukraine
Shareholders: Ferrexpo
Markets: Austria, Germany, Slovakia
Products: Iron ore pellets

Production capacity

Iron ore mining 28,000 thousand tons
Iron ore beneficiation 11,000 thousand tons
Manufacture of iron ore pellets 12,000 thousand tons

Staff and wages

Number of employees 7507
Average wage* UAH 177,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

2012 28662 kt2012
2013 22736 kt2013
2014 17655 kt2014
2015 16156 kt2015
2016 16232 kt2016
2017 15662 kt2017
2018 20876 kt2018
2019 16654 kt2019
2012 11830 kt2012
2013 13195 kt2013
2014 14378 kt2014
2015 1726 kt2015
2016 14006 kt2016
2017 12807 kt2017
2018 12878 kt2018
2019 13103 kt2019
2012 9638 kt2012
2013 10550 kt2013
2014 10685 kt2014
2015 11264 kt2015
2016 10937 kt2016
2017 10548 kt2017
2018 10607 kt2018
2019 10519 kt2019

Indicative sales structure by products in 2019*

Indicative sales structure by markets in 2019*

* structure of sales volumes, metric tons

Financial performance, $ million

EBITDA margin 20.1% 29.3% -2.2% 28.1% 41.7%35.13%34,.2%
Net income47-146-271-2160193272
Net income margin 4.5% -14.7% -39.4% -0.2% 20.9%23.30%27.4%

Key facts


Poltava Mining increased its authorized capital by 62.3% or by ₴1.185 billion.

Ferrexpo currently holds 100% of shares in Poltava GOK. The Group bought shares from minority shareholders using «squeezed out» procedure.

Poltava Mining is to invest $34 million in the construction of a closed warehouse for iron ore concentrate. The project will be implemented in 2019–2020 to ultimately increase pellet production by 1.5 million tons in 2021.

FPM plans to produce 10.6 million tons of pellets from its own iron ore and iron ore mined at Ferrexpo Yeristovo Mining. 9.88 million tons of 65% Fe pellets are planned to be produced in 2019.

Sources: websites of the companies, media outlets