Ferrexpo halts operations in Ukraine following missile attacks

Ferrexpo has suspended operations in Ukraine after Russian missile strikes damaged the country’s electrical infrastructure.

The London-listed mining business said none of its employees had been injured by yesterday’s attacks, which killed at least 19 people and were Russia’s most severe aerial assault since the full-scale invasion of Ukraine in February.

But the group’s operations are now experiencing ‘limited power supply’ and are being used for crucial equipment needed for ‘essential services and local communities’.

Difficulties: Ferrexpo’s output of iron ore pellets has been heavily impacted by the conflict this year, partly because Russian forces have blockaded vital Black Sea ports

It has temporarily shut down production at its mines, and is assessing the harm caused to electrical infrastructure and the estimated time needed to make repairs before operations can restart.

Ferrexpo’s output of iron ore pellets has been heavily impacted by the conflict this year, partly because Russian forces have blockaded vital Black Sea ports.

Further disruption has been created by air strikes hitting Ukraine’s railway network, which has also had to transport increasing levels of grain, one of the country’s other primary commodities.

Figures released last week showed its production of iron ore pellets during the third quarter was 68 per cent lower than the equivalent period last year, while sales plummeted by 65 per cent to 1 million tonnes.

Despite the latest setback, the company said it has ‘sufficient volumes’ of products either being transported or stockpiled to satisfy forecast sales capacity.   

Jim North, Ferrexpo’s chief executive, said: ‘Since the start of Russia’s invasion of Ukraine in 2022, our first priority has always been our people, and we are working to ensure the safety of our team in Ukraine.

‘The events of yesterday have resulted in significant damage to major cities across Ukraine, as well as a power outage at our operations and local communities.

‘We are working to ensure that power is provided in critical areas, both within our facilities and in local communities, in order to support the safety of our workforce and community members.’

Russia’s aerial ambush has continued into a second day, with Lviv suffering power outages and water shortages after four electricity stations in the city were attacked this morning.

Other explosions have been reported in the central region of Zaporizhzhia, where strikes overnight targeted residential buildings, medical facilities and schools.

This latest round of attacks is thought to be in response to Saturday’s explosions on the Kerch Bridge, an important supply route linking the annexed region of Crimea to the Russian mainland. 

Condemnation of today’s and yesterday’s aggression has been widespread, with leaders of the so-called ‘Bucharest Nine’ NATO countries saying they amounted to ‘war crimes under international law.’

Ferrexpo shares had fallen 4.1 per cent to 121.8p by the late afternoon on Tuesday, making it one of the top fallers on the FTSE 250 Index. 

Their value has more than halved since 23 February, the day before the Ukraine War descended into a full-scale invasion by the Russian military.

This post first appeared on Dailymail.co.uk