Ferrexpo, a major exporter of iron ore pellets, announced on Tuesday that its Ukrainian subsidiary, Ferrexpo Poltava Mining (FPM), is facing a $3.77 billion civil claim related to allegations of illegal mining and the sale of waste products.
The legal dispute initially focused on waste sales but has now escalated into claims that FPM engaged in illegal subsoil mining, allegedly causing environmental damage. Ferrexpo has denied any wrongdoing, asserting that no illegal extraction took place.
Following the announcement, Ferrexpo’s shares tumbled nearly 21%, reaching a two-month low of 81.9 pence on the London Stock Exchange.
In a statement, Ferrexpo emphasized that it views the accusations as baseless and is prepared to defend itself in court.
"FPM is of the view that the accusations and claim are without merit, and the unit intends to vigorously defend its position," the company said.
Despite the legal uncertainty, Ferrexpo confirmed that its operations remain unaffected, reassuring investors and stakeholders that mining activities and exports continue as normal.
As the case unfolds, Ferrexpo faces a significant legal battle that could impact its financial standing and market position. The company’s ability to navigate the legal challenges while maintaining operational stability will be closely watched by investors and industry analysts in the coming months.
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