Ferrexpo to invest $2 billion by 2030 to increase pellet production

The Ferrexpo Group is going to spend $2 billion in capital investment in 2020–2030 to double pellet production, according to Interfax-Ukraine.

“In 2020, a project has been completed at Poltava Mining for the construction of the Section No. 9 complex of the beneficiation plant for additional production of finished products. This will increase annual concentrate production by 1.5–2 million tons. As of now, the complex is being tested. An additional output of concentrate is supposed to be either used for pellet production, or supplied for sale, depending on demand,” the message says.

In 2021, the Company expects to increase its pellet production to 12 million tons from 10.5 million tons in 2019. At the same time, Ferrexpo is making efforts to improve product quality.

As GMK Center reported earlier, in the summer, Poltava Mining has started developing a project to increase its annual output to 24 million tons within the next five to eight years. To this end, the producer allocated $100 million to launch Section 9 of the beneficiation plant.

The Ferrexpo Group is the largest producer and exporter of iron ore pellets among the former Soviet Union countries. Its production assets include Poltava Mining and Yeristovo Mining.

In 2019, Ferrexpo increased iron ore pellet production by 0.8% as against the previous year, to 10.5 million tons. Its last year’s pellet sales amounted to around 10.3 million tons, up from 2018 (10.2 million tons).

Ferrexpo plc holds 100% of shares in Ferrexpo AG, which, in its turn, owns 100% of shares in Poltava Mining and 100% of shares in Yeristovo Mining.