REG - Ferrexpo plc - Update regarding Ukrainian subsidiary

FerrexpoAnnouncement

04/02/2025 15:30

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RNS Number : 8926V  Ferrexpo PLC  04 February 2025

4 February 2025

Ferrexpo plc

("Ferrexpo" or the "Group")

 

Update regarding Ukrainian subsidiary

Ferrexpo plc (LSE: FXPO) provides an update on proceedings against the Group's
subsidiary Ferrexpo Poltava Mining ("FPM") in Ukraine.

As previously announced on 16 January 2025, the National Police have completed
the pre-trial investigation of the sale of waste products from the production
of iron ore pellets and the case has been sent to a court of the first
instance. FPM has now received information that a civil claim was filed
seeking joint liability of FPM and its General Director for damages amounting
to UAH 157 billion (approximately US$3.76 billion) in favour of the Ukrainian
state.

Initial accusations on the illegal sale of waste products have transformed
into accusations that FPM is illegally mining and selling subsoil (minerals
other than iron ore), which is said to have caused damage to the environment.
FPM rejects these allegations in their entirety on the basis that there was no
illegal extraction of the subsoil. FPM mines and extracts iron ore according
to its mining licence. The iron ore is then processed to produce iron ore
pellets. As a result of these processes, any waste that is leftover is
stockpiled in accordance with best mining practices and in compliance with
environmental standards.

Based on information received by the Group and with advice from Ukrainian
legal counsel, FPM is of the view that these accusations and claim are without
merit and FPM intends to vigorously defend its position in the Ukrainian
courts.

The operations of the Group remain unaffected. Further updates will be made on
the situation as and when appropriate. This announcement contains inside
information. The person responsible for the release of this announcement is
Mark Gregory, Group Company Secretary.

 

For further information please contact:

 Ferrexpo:
 Nick Bias       n.bias@ferrexpo.com sureties enquiry                                    +44 (0)20 7389 8305
                 (mailto:n.bias@ferrexpo.ch?subject=Ferrexpo%20contested%20securities)
                                                                                         +44 (0)7733 177 831

 Tavistock:
 Jos Simson      ferrexpo@tavistock.co.uk (mailto:ferrexpo@tavistock.co.uk)              +44 (0)20 7920 3150
 Gareth Tredway                                                                          +44 (0)7785 974 264

 

About Ferrexpo:

About Ferrexpo: Ferrexpo is a Swiss headquartered iron ore company with assets
in Ukraine and a listing in the equity shares commercial companies category on
the London Stock Exchange (ticker FXPO) and a constituent of the FTSE 250 and
FTSE4Good indices. The Group produces high grade iron ore pellets, which are a
premium product for the global steel industry and enable reduced carbon
emissions and increased productivity for steelmakers when converted into
steel, compared to more commonly traded forms of iron ore. Ferrexpo's
operations have been supplying the global steel industry for over 50 years.
Before Russia's full-scale invasion of Ukraine in February 2022, the Group was
the world's third largest exporter of pellets. The Group has a global customer
base comprising of premium steel mills around the world. For further
information, please visit www.ferrexpo.com (http://www.ferrexpo.com) .

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