Published by Global Banking & Finance Review®
Posted on February 4, 2025
1 min readLast updated: January 26, 2026
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Ferrexpo's Ukrainian unit faces a $3.77 billion claim over alleged illegal mining, causing a significant drop in its share price.
(Reuters) -London-listed miner Ferrexpo said on Tuesday a civil claim worth 157 billion hryvnias ($3.77 billion) was filed against its Ukrainian unit, Ferrexpo Poltava Mining (FPM), in relation to alleged illegal mining and a sale of waste products.
Shares in the company slumped nearly 21% to a more than two-month low of 81.9 pence on the news.
"Initial accusations on the illegal sale of waste products have transformed into accusations that FPM is illegally mining and selling subsoil, which is said to have caused damage to the environment," Ferrexpo said.
The miner said FPM has rejected the allegations on the basis that there was "no illegal extraction of the subsoil".
Ferrexpo said that FPM is of the view that the accusations and claim are "without merit" and the unit intends to "vigorously defend" its position in the courts.
The exporter of iron ore pellets said its operations were unaffected by the legal case.
($1 = 41.6800 hryvnias)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Shinjini Ganguli and Maju Samuel)
The main topic is the $3.77 billion civil claim against Ferrexpo's Ukrainian unit for alleged illegal mining activities.
The claim caused Ferrexpo's shares to fall nearly 21%, reaching a two-month low.
Ferrexpo Poltava Mining denies the allegations and plans to defend its position in court.
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