Share of local and regional procurements amounted to 20%
The London quoted iron ore company, Ferrexpo with assets in Ukraine paid $182 million to local and regional suppliers in 2022, reflecting value generation for local and regional business in Horishni Plavni and the Poltava region, as stated in the Responsible Business Report 2022 of Ferrexpo plc.
The largest spending was on electricity, gas, diesel fuel, spare parts, explosives, and steel grinding media, with the majority of suppliers by value are located in Ukraine.
The share of local and regional suppliers in total procurement amounted to 20%, which, combined with other domestic suppliers totaled 90%, demonstrating that Ferrexpo is an integral part of the economy of Ukraine.
The Group stated that long-standing relationships with suppliers have supported Ferrexpo`s business during the ongoing war in Ukraine. The war has meant that Ferrexpo has had to rely on close relationships with local suppliers to ensure an as uninterrupted a supply as possible for continuous operations.
Building a sustainable supply chain, the Group’s compliance department undertakes regular checks on all suppliers, screening entities for risks and elevating those deemed to be higher risk for further checks and consideration as to their eligibility.
Ferrexpo has developed a Code of Conduct for Suppliers, which in 2022 was referenced in 90% of all contracts, with over 1,300 due diligence checks completed on potential third-party suppliers.
Also, the Group pays a special attention to understand the greenhouse gas emissions footprint of suppliers, as it directly impacts on Ferrexpo’s Scope 3 emissions.
As GMK Center reported earlier, 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.