Ferrexpo's export operations suffered after a Russian drone attack on a Black Sea vessel carrying iron ore pellets.

Swiss mining company Ferrexpo, whose main interests are related to Ukrainian iron ore assets, announced that a crew member died after a ship carrying the company's products was hit by Russian drones in the Black Sea, adding that the incident disrupted its export operations and negatively affected its liquidity position.

The company said that the vessel, which was transporting its direct recovery pellets (DR-grade) to customers in the Middle East, was damaged while sailing in the Ukrainian waters of the Black Sea. According to Ferrexpo, the crew was rescued, but one crew member died. The vessel remains afloat, although the condition of both the cargo and the vessel has not yet been determined. Rescue efforts are being considered, but remain challenging in the current circumstances.

The company suspends export shipments to the Black Sea

Ferrexpo currently has about 189,000 tons of pellets destined for shipment, including 55,000 tons of DR-class pellets loaded onto the stricken vessel and about 90,000 tons of DR-class pellets stored in warehouses. The cost of production and delivery of this inventory is estimated at about $20 million

The company stated that the ongoing drone and missile attacks in and around Ukrainian ports, as well as on ships leaving these ports, have prompted shipowners to cancel ship reservations. As a result, Ferrexpo does not expect to load additional vessels through Black Sea exports.