Exclusive Ferrexpo progresses its “Green Mine” initiative to electrify and decarbonize its operations

The company is considering long-term funding options

Ferrexpo, the London-listed iron ore producer with operations in Ukraine, is moving forward with its “Green Mine” initiative, a multi-phase program designed to electrify and automate the company’s mining operations in Ukraine.

As the company reported in its recent Responsible Business Report, this step could significantly cut both carbon emissions and long-term production costs.

The project, formalised in 2023, represents one of the company’s most ambitious environmental investment project to date. Together with MEC Mining, a leading global technical research and consulting firm, Ferrexpo has conducted comprehensive study based on a ten-year plan to identify opportunities for the electrification of its mining operations.

The first phase of the study included identification of the most effective electrification options for Ferrexpo’s open-pit mines. A joint project working group visited various mines and OEM manufacturers across North America, Asia, and Australia, and participated in industry events to evaluate available options. The research concluded that large 300-tonne electric-diesel trucks – with trolley-assist where feasible – are the most suitable choice, given the topography and scale of Ferrexpo’s mining operations. Another considered solution involves replacing the current fleet of diesel and diesel-electric locomotives with battery-electric models.

In the second phase, Ferrexpo has launched conceptual design work for a pilot trolley-assist project at its Yeristovo Mine. Engineering partners ABB and MEC Mining are helping define the project scope, including the design of power infrastructure, fleet composition, maintenance requirements, and the location of charging stations. The pilot study has already identified optimal mine pit ramps and haulage routes for the installation.

The analysis conducted has offered a comprehensive view of the project’s CAPEX and potential operating cost savings. While further steps, such as site preparations and equipment procurement, are needed before any investment decisions can be finalized, Ferrexpo has already begun preliminary discussions on possible funding options that consider both the ending and continuation of the war.

As previously reported by GMK Center, Ferrexpo had prewar plans to invest $3.3 bln to reach net zero emissions. The company has already identified key projects that will drive the majority of its carbon emissions reductions, including transitioning to biofuel in the pelletizing process, phasing out fossil fuels from energy mix, electrifying mining vehicles and equipment, introducing HVO-fueled barges.