Pivdenny Mining and Processing Plant (Southern Mining, Kryvy Rih, Dnipropetrovsk region) has begun suspending mining operations and temporarily scaling back production due to Russian attacks on vessels in the Black Sea, while expressing hope that operations can resume in August, the company said on its website.
"The decision was made because of the aggressor state's ongoing attacks on civilian merchant vessels bound for Ukraine's Black Sea ports, which have effectively blocked their operations. The company will continue to fulfill its obligations to employees and partners and will resume mining as soon as the security situation allows," Pivdenny Mining said.
The company stressed that suspending mining was a forced measure that it had postponed for as long as possible. It noted that since the start of the full-scale invasion, the plant has operated under a range of critical challenges, including enemy shelling, power supply disruptions, soaring logistics costs, the introduction of the European Union's Carbon Border Adjustment Mechanism (CBAM), and tighter EU quotas on products from Ukraine's mining and metals sector.
At the same time, Pivdenny Mining said the situation became particularly acute after Russia launched systematic missile attacks on international merchant vessels, prompting the suspension of maritime shipping to Ukraine's Black Sea ports because shipowners feared for the safety of their crews.
"Several shiploads of iron ore intended for export have accumulated both at the ports and in Pivdenny Mining's storage facilities. As there is no capacity to store additional mined products, the plant has been forced to suspend operations temporarily," the press release said.
According to the company, it will continue to fulfill its social responsibilities. During the temporary suspension of mining, which it plans to resume in August 2026, employees will be assigned to repair work and scheduled maintenance.
In addition, Pivdenny Mining's workforce appealed to the President of Ukraine, the government, and members of parliament to make every effort to unblock logistics routes to Ukraine's Black Sea ports.
"Export-oriented industries such as metallurgy and agriculture cannot fully ship their products to customers without access to the country's seaports. This is not only about the survival of individual enterprises, but also about tax revenues for budgets at all levels, foreign currency earnings for the country, and the continuation of comprehensive assistance that businesses provide to local communities and the Defense Forces of Ukraine," the press release said.
Pivdenny Mining is one of Ukraine's leading producers of iron ore concentrate. The company mines and processes low-grade ferruginous quartzites to produce iron ore concentrate. Its raw material base consists of quartzites from the Skelevatske deposit located in the central part of the Kryvy Rih iron ore basin.
Before the war, Pivdenny Mining was controlled by Metinvest Group and Lanebrook Ltd. (formerly the majority shareholder of Evraz Group, which exited the group's shareholder structure in 2018). Lanebrook acquired a 50% stake in Pivdenny Mining from Privat Group (Dnipro) in late 2007.
According to data from the National Depository of Ukraine (NDU) for the fourth quarter of 2025, Zantest Limited owns 29.8815% of the company's shares, while Jetere Limited (both Cyprus-registered companies sharing the same address) holds 59.7630%.
Pivdenny Mining reduced iron ore concentrate production by 45.1% year-on-year in January-March 2026 to 1.546 million tonnes, down from 2.819 million tonnes in the same period of 2025.
