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(Alliance News) - Ferrexpo PLC on Thursday said iron ore pellet production doubled quarter-on-quarter in the first three months of 2023, as it saw a more steady supply of electricity during the period.
Output was weaker on an annual basis, however, as the iron ore pellet producer continues to feel the effect of the Russia-Ukraine war.
The firm, with operations in central Ukraine, reported that production for the first quarter ended March 31 was 901,000 tonnes, compared with 420,000 million tonnes in the fourth quarter of 2022.
The firm said the production increase was driven by improved electricity supply during the period, which enabled the restart of its second pelletiser line in late February. Ferrexpo will continue to operate between one and two pellet lines into the second quarter.
The company's production has suffered amid the continuing war in Ukraine, and its effect on energy supply, with production volumes falling by 46% in 2022. Annually, pellet production was own 67% in the first quarter of 2023.
Ferrexpo said it remains focused on producing high grade iron ore, with 100% of its output in the first quarter grading at 65% iron or above.
Total iron ore sales volume was 850,000 tonnes during the first quarter, with deliveries made to European customers via rial and barging operations.
Chief Executive Officer Jim North said: "Pellet production of 0.90 million tonnes in the first quarter of 2023 represents a significant increase on a quarter on quarter basis, and reflects an easing of the operational constraints experienced at the end of 2022.
"As noted in our recent full year results announcement, we now are in a position to operate a second pelletiser line (out of four in total), with our logistics networks able to deliver sales volumes to customers in line with this level of demand."
Ferrexpo shares rose 3.9% to 114.88 pence each in London on Thursday morning.
By Harvey Dorset, Alliance News reporter
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