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 7,830
Average wage* UAH 149,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

300002500020000150001000050000
2012 28662 kt2012
2013 22736 kt2013
2014 17655 kt2014
2015 16156 kt2015
2016 16232 kt2016
2017 15662 kt2017
20000150001000050000
2012 11830 kt2012
2013 13195 kt2013
2014 14378 kt2014
2015 1726 kt2015
2016 14006 kt2016
2017 12807 kt2017
20000150001000050000
2012 9638 kt2012
2013 10550 kt2013
2014 10685 kt2014
2015 11264 kt2015
2016 10937 kt2016
2017 7680 kt2017
2018 7610 kt2018

Indicative sales structure by products in 2018

Indicative sales structure by markets in 2018

* structure of sales volumes, metric tons

Financial performance, $ million

 201320142015201620172018
Sales1053991687662766826
EBITDA212290-15186319290
EBITDA margin 20.1% 29.3% -2.2% 28.1% 41.7%35.13%
Net income47-146-271-2160193
Net income margin 4.5% -14.7% -39.4% -0.2% 20.9%23.30%
CAPEX18814839397483

Key facts

In 2019

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