Wednesday19 February 2025
g-novosti.in.ua

Ferrexpo once again denies allegations against the mining plant and its CEO regarding the illegal sale of pellets worth 157 billion UAH.

The mining company Ferrexpo plc, with its primary assets located in Ukraine, has announced that it has received information regarding a civil lawsuit seeking joint liability from Poltava Mining and its general director for damages owed to the Ukrainian government, amounting to 157 billion UAH.
Ferrexpo снова опроверг accusations о вине ПГОКа и гендиректора в незаконной продаже окатышей на сумму 157 млрд грн.

The mining company Ferrexpo plc, with primary assets in Ukraine, has reported receiving information regarding a civil lawsuit for joint liability against Poltava GOK and its general director for damages amounting to 157 billion UAH in favor of the Ukrainian state.

According to information from Ferrexpo, details were received regarding the conclusion of a pre-trial investigation by the National Police on January 16, 2025, concerning the sale of waste from iron ore pellet production, and the case has been forwarded to the first instance court.

Currently, the initial charges of illegal waste sales have transformed into accusations that Poltava GOK is unlawfully extracting and selling minerals (excluding iron ore), which is alleged to have caused environmental harm.

"Poltava GOK completely denies these accusations on the grounds that there has been no illegal extraction of minerals. Poltava GOK has extracted and continues to extract iron ore in accordance with its mining license. Subsequently, the iron ore is processed to produce iron ore pellets. As a result of these processes, any remaining waste is accumulated in line with best mining practices and environmental standards," the press release states.

Based on information received by the group and advice from Ukrainian legal advisors, Poltava GOK believes that these accusations and claims are unfounded, and FPM intends to firmly defend its position in Ukrainian courts.

The group's operations remain unchanged. Further updates on the situation will be provided as necessary.

It was previously reported that other investigative actions are being conducted concerning the management of Poltava GOK. In particular, in September 2023, investigators from the National Police informed the chairman of Poltava GOK, Viktor Lotous, of suspicions regarding illegal mineral extraction amounting to 157 billion UAH, which also allegedly harmed the environment (Part 2 of Article 28, Part 4 of Article 240, Part 2 of Article 364-1 of the Criminal Code of Ukraine).

Ferrexpo is an iron ore company with assets in Ukraine. Ferrexpo owns 100% of the shares of PJSC "Poltava GOK," a 100% stake in LLC "Yeristovskyi GOK," and a 99.9% stake in LLC "Belanivskyi GOK."