Gas consumption expected to be 3% lower, as a result of lower natural gas consumption

Ferrexpo strengthened its position as a long-term investor in Ukraine with $161 mln of capital expenditures in 2022. The main investment project completed by Ferrexpo in 2022 was the installation of the new press filtration complex, which is expected to further lower the moisture content from iron ore concentrate as it exits the beneficiation plant, before being pelletised, according to the data in Ferrexpo Annual report 2022.

The equipment installed represents Metso press filtration technology, which represents an example of modernisation, which will complement the company’s existing vacuum filter system.

Benefits associated with modernization of filtration complex include:

  • Lower energy consumption in the pelletizer, where the pellets are heated for their solidification due to the consumption of natural gas. Gas consumption is expected to decrease by 3%. As a result, the company expects to optimize production costs and reduce the volume of greenhouse gas emissions under category 1.
  • Improved product quality, since excess moisture in green (unfired) pellets can lead to cracking as they are heated. The Cold Compression Strength of company’s pellets, which is a key metric for pellet quality, is forecast to increase by 8% for Ferrexpo Premium Pellets (65% Fe).
  • Increase throughput of material throughout processing plant, resulting in 3% higher throughput rates on average.
  • Lower losses of iron as concentrate is converted to pellets. This will result in a 0.2% Fe uplift in pellets on average.

Last year 104 mln or 65% of Ferrexpo`s capital investment was allocated to growth projects, with the majority of this related to projects either nearing completion as of February 2022 or those which represent low cost, high return opportunities.

“At Ferrexpo, we are proud to support Ukraine. Through our local presence and position as a long-term investor in the country, we have been able to provide targeted support throughout the war” – emphasized Ann-Christin Andersen, Chair at Ferrexpo’s Health, Safety, Environment and Community Committee.

Ferrexpo systematically implements projects leading to increased energy efficiency. In 2015, the company began using sunflower husks as a partial replacement for natural gas. In five years of replacing gas with sunflower husks, Ferrexpo managed to reduce gas use by 25%.

As GMK Center reported earlier, Ferrexpo invested $161 million to the economy of Ukraine in 2022, that’s consistent with it’s average amount of capital expenditures (CAPEX) for the last 8 years – $160 million. Thus, Ferrexpo maintained the level of activity of investment processes, despite the hostilities on the territory of Ukraine.