According to a report in UK newspaper The Guardian, Ferrexpo, the world’s third-largest exporter of iron ore pellets for the steel industry, has issued force majeure notices telling some customers supplies have been cut off after the port it operates from in Ukraine suspended operations.
The trading and mining company’s headquarters are in Switzerland but it operates in Ukraine, where it has three mines and a production facility. The company has said that export facilities at the port of Pivdennyi in the south-west of Ukraine have been ‘temporarily suspended following notification from the port authorities’.
“The group’s marketing department has issued force majeure notices to certain customers that were due to receive the group’s products via oceangoing vessels in the near term.”
Spokesperson for Ferrexpo
The company said: “As a result, the group’s marketing department has issued force majeure notices to certain customers that were due to receive the group’s products via oceangoing vessels in the near term.”
The group stated that while the Ukrainian government had suspended rail transportation, its mining operations near the city of Horishni Plavni in central Ukraine, were continuing to operate.
“The group’s continued primary focus remains the safety of its workforce in Ukraine.”
Spokesperson for Ferrexpo
“The group has the ability to stockpile its iron ore pellets at site while Ukraine’s logistic networks continue to experience disruption,” the company said. “The group’s continued primary focus remains the safety of its workforce in Ukraine.”
The announcement adds to ongoing uncertainty of the consequences of conflict between Ukraine and Russia, as potential military strikes will have global economic repercussions; as suppliers shut down, or are forced to outsource in order to continue output.
Source: The Guardian