The UK-based company Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced that in the second quarter of 2009 it continued to trade profitably and produced at its full mining capacity.
Accordingly, in Q2 2009 the company recorded a 21.1 percent increase quarter on quarter in its iron ore production to 7.5 million metric tons, while its concentrate production saw an 18.2 percent rise quarter on quarter to 2.7 million metric tons. Compared to Q2 2008, the company's iron ore output in Q2 2009 increased by 3.8 percent, while its concentrate output registered a 1.5 percent decrease.
During the second quarter this year, Ferrexpo's total pellet production increased by 19.8 percent quarter on quarter to 2.255 million metric tons.
Ferrexpo's sales volume in the first half of 2009 exceeded production during the same period, while its production costs continue to trend downwards.
"Freight rates from the Black Sea to China did put pressure on our average achieved DAF/FOB prices during the period, but this is likely to prove a temporary phenomenon," Ferrexpo CEO Kostyantin Zhevago stated.
"The outlook for iron ore is improving for the next quarter, particularly in our traditional markets, which will reduce our reliance on the Asian seaborne spot market to some degree," Mr. Zhevago added.