Business Times Issue 102 | Ferrexpo| Oct'23

A LEADING

PRODUCER OF HIGH-GRADE IRON ORE PELLETS

BUSINESS TIMES

FERREXPO

FERREXPO

A LEADING PRODUCER OF HIGHGRADE IRON ORE PELLETS

Project by: Malvern Kandemwa

Words by: Michelle Duncan

Ferrexpo Plc was founded in 1960 and has deep roots in Ukraine’s mining industry. The company’s primary focus is on the production of high-quality iron ore pellets, which are used in the steelmaking process. Ferrexpo operates primarily in the Poltava mining and processing complex, one of the largest iron ore deposits in the world. With extensive mining reserves and a resolute workforce, Ferrexpo has become a key player in the global iron ore market. One of the driving forces behind this success has been its visionary leadership with the recent appointment of Lucio Genovese as Interim Executive Chair. With his experience in the mining industry, Genovese brings valuable expertise and leadership to the company. Mr. Genovese has extensive experience and expertise in the mining and commodity

trading sectors, as well as in corporate finance and governance. He is the CEO of Nage Capital Management, a Swiss based investment firm and a Chartered Accountant. Mr Genovese will lead the Group until a permanent CEO is appointed and will oversee the implementation of the Group’s strategic priorities and growth plans. His appointment demonstrates Ferrexpo’s commitment to strengthening its leadership team and ensuring a smooth transition into the future.

Ferrexpo stands as a beacon of leadership and innovation in Ukraine’s mining sector. With a remarkable blend of innovative technology, unwavering commitment to sustainability, strategic partnerships, and a visionary outlook, Ferrexpo has not only transformed its operations but has also set a benchmark

THE COMPANY’S COMMITMENT TO TECHNOLOGY-DRIVEN INNOVATION HAS NOT ONLY IMPROVED ITS OPERATIONAL PERFORMANCE BUT ALSO POSITIONED IT FOR LONG-TERM SUSTAINABILITY

for the industry at large. Its operations in Ukraine have been resilient despite the challenges posed by the ongoing conflict with Russia. They kept its production and sales volumes, while ensuring the safety and well-being of its workforce and communities. Ferrexpo has also supported humanitarian and social initiatives in Ukraine, such as providing medical equipment and supplies to hospitals, donating food and hygiene kits to internally displaced people, and funding educational and cultural programs.

Lucio Genovese, Interim Executive Chair of Ferrexpo

TECHNOLOGY TRANSFORMATION

In June 2007, Ferrexpo plc was listed on the London Stock Exchange, producing 8.6 million tonnes of iron ore pellets in the year prior to listing. Since then, the company has invested over US$3 billion in expanding and modernising its production base and coordination network. In 2011, the company opened its second iron ore mine, the Yeristovo mine, which is found north of its main

iron ore mine, the Poltava iron ore mine. In 2020, the company added two new products to its portfolio: higher grade iron ore pellets grading 67% Fe, and high-grade commercial concentrate, also grading 67% Fe. These products enable the company to access new markets and customers that demand higher quality and lower carbon intensity.

The journey towards technology transformation has been nothing short of remarkable. Embracing

modernization, the company has integrated advanced technologies into its mining operations, redefining efficiency, and safety. Ferrexpo has always been at the forefront in terms of adopting advanced technologies and transforming its operations. The company’s technology transformation efforts focus on enhancing mining efficiency, improving product quality, and ensuring a safe working environment. Through the integration of automation, digital solutions, and data analytics, Fer-

rexpo has significantly increased operational productivity and perfected its supply chain. By using autonomous haulage systems and real-time monitoring. Ferrexpo has achieved greater efficiency and accuracy in its mining processes. The company’s commitment to technology-driven innovation has not only improved its operational performance but also positioned it for long-term sustainability.

Its ultramodern mining fleet, equipped with sophisticated sensors and connectivity, enables real-time data collection. This data is then analysed to perfect production processes, leading to higher yields and cost reductions. The implementation of innovative drilling and blasting technologies has not only increased ore recovery rates but also minimised environmental impact. The use of automated equipment, data analytics, and digital communication systems has elevated productivity while minimising risks associated with manual labour.

THE COMPANY’S COMMITMENT TO TECHNOLOGY-DRIVEN INNOVATION HAS NOT ONLY IMPROVED ITS OPERATIONAL PERFORMANCE BUT ALSO POSITIONED IT FOR LONG-TERM SUSTAINABILITY

SUSTAINABILITY

Ferrexpo understands the importance of sustainable mining practices in protecting the environment and contributing positively to local communities. Their commitment to sustainability is woven into the fabric of its operations. The company has implemented a range of sustainability initiatives to minimise its environmental impact. It Is also dedicated to resource conservation, carbon

footprint reduction, and biodiversity preservation. Through investments in renewable energy sources, waste management systems, and water conservation programs, committed to reducing its environmental footprint and running responsibly.

The company’s investment in waste reduction and recycling initiatives proves its dedication to reduce waste generation and promote circular economy prin-

ciples. Its responsible mining practices prioritise environmental conservation, community engagement, and social welfare. By adhering to strict environmental standards, mitigates its ecological footprint and conserves natural resources. In addition, Ferrexpo’s community development programs, focusing on education and healthcare, underscore its role as a responsible corporate citizen.

“With nearly a century of sustainable innovation, Caterpillar has a legacy of providing products and services that continually improve the quality of life and the environment by helping our customers fulfill society’s need for infrastructure in a sustainable way. The world is transitioning toward a lower-carbon future, and Caterpillar supports efforts to mitigate climate change. We are making significant progress to reduce greenhouse gas (GHG) emissions from our operations, and our customers rely on Caterpillar to provide a diverse portfolio of products, services and solutions that lower GHG emissions, improve efficiency and productivity, and deliver energy flexibility”, Jim Umpleby, Caterpillar Inc. Chairman & CEO says.

This year, Caterpillar released a Sustainability Report which included 2022 Sustainability highlights and progress of 2030 Sustainability goals released in 2021.

Among achievements highlighted in Report there are:

• 33% reduction in Scope 1 + 2 greenhouse gas emissions from 2018.

• 17% improvement in recordable injury frequency from 2018.

• 14 Employees Resource Groups (ERGs) building community, belonging and experiences to support development.

Nearly $900M invested by the Caterpillar Foundation over the last 70 years.

• 100% of new products introduced reduced waste, improved design for rebuild/remanufacturing, lowered emissions or improved efficiency from the previous generation.

140M lbs of material taken back through Cat Reman.

Successful demonstration of first battery electric 793 large mining truck prototype, complementing our innovative portfolio of products and services designed to help its customers achieve their climate-related goals.

Demonstration of its first battery electric 793 large mining truck prototype was a part of a growing portfolio of innovative electrified solutions with support from key mining customers participating in

Caterpillar’s Early Learner program. A primary objective of the program is for Caterpillar to collaborate more closely with customers as the industry undergoes transformational change through the energy transition.

The main milestones of a Caterpillar’s battery electric mining truck accelerated development strategy:

• 2022 Machine technical feasibility / Validate technical assumptions

2024 Product and technology validation / Refine requirements / Process development

• 2025 Fleet optimization / Validate production intent / Infrastructure learnings

2027+ Full production capabilities / Site integration

Over the past 20 years, Caterpillar has invested more than $30 billion in R&D to deliver best-in-class innovation, including autonomy, alternative fuels, connectivity and digital, and electrification (AACE) technologies.

As a result, Caterpillar leads the industry in autonomy. It has the largest autonomous truck fleet in the world, with over 580 machines and more launching every year. Autonomy drives operations consistency for our customers — resulting in zero reported lost-time injuries, productivity improvement of up to 30% over staffed fleets, enhancing fuel efficiency, and reducing associated GHG emissions. Today, its autonomous portfolio goes beyond haul trucks to include water trucks, drills, dozers, wheel loaders and underground loaders.

Alternative Fuels is another focus for Caterpillar because fuel choice is one way that customers can reduce lifecycle GHG emissions today. Many Caterpillar products operate on lower-carbon intensity fuels, including biodiesel, renewable diesel and biogas. These fuels reduce lifecycle GHG emissions in the fuel value chain; GHG emissions at the tailpipe are essentially the same as traditional fuels.

Caterpillar will enable our customers to achieve their climate-related goals as they build a better, more sustainable world. Collaboration is key. Caterpillar will continue to work alongside its customers to identify their challenges, understand their requirements and deliver solutions that help them be successful today and into the future.

Together with its partner Caterpillar, Zeppelin is focused on energy and emissions reduction in our own business, and helping customers to decrease their carbon

footprints through machinery and power solutions that contribute to lowering greenhouse gas emissions. Sustainability is one of the core values of Zeppelin and Caterpillar. We strive to balance environmental management, social responsibility, and economic growth - and help our business partners do the same.

Despite the tragic events continuing to occur in Ukraine, Caterpillar continues to fulfill its obligations and deliver equipment and spare parts as well as Zeppelin Ukraine continues providing professional service at a high level in the shortest possible time and is improving quality in a continuous process. Genuine spare parts top service fill throughout the warehouse’s network in the country allows providing an uninterrupted supply to our customers even in current unstable situation in Ukraine.

Together with providing top level service for our customers, Zeppelin Ukraine is also involved in social help events and donating to funds helping Ukrainian people in need with the bare necessities. Caterpillar Inc. With 2022 sales and revenues of $59.4 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

“Zeppelin Ukraine TOV” LLC is an exclusive official dealer on the Ukrainian market of the worldwide company Caterpillar. It is a part of the Zeppelin group of companies, as it operates in 220 branches around the world with a staff of over 10,000 and reach sales of 3.8 billion EUR in 2022 financial year. A wide range of products, as company propagates, helps customers to complete the task, whether it be folding - from earthworks to electric supply of the prompted object. In line with Cat® technology, which is used in everyday life, heating, oil and gas and lumber industries, we offer a wide range of Cat® diesel and gas engines, systems and generators Cat®.

zeppelin.ua

STRATEGIC PARTNERSHIP

Ferrexpo has forged strategic partnerships with renowned industry leaders, such as Zeppelin International, a global equipment solutions provider. This collaboration has been instrumental in driving Ferrexpo’s technological advancements, sustainability endeavours, and operational excellence. Through strategic partnerships, Ferrexpo gains access to innovative technology and tools that ensure safer and more efficient operations. Moreso, industry expertise and market insights, enabling the company to stay ahead of the competition and deliver value to its stakeholders. These partnerships foster a culture of innovation paving the way

for knowledge exchange and skill development, enabling its workforce continuous improvement, working and remaining at the forefront of mining technology.

EXPANSIONS AND GLOBAL REACH

Ferrexpo’s expansion initiatives have not only helped grow its market presence but also underscore its commitment to long-term success. The company has actively pursued growth opportunities through targeted investments in new mining projects and expanding its global footprint. Such forward-thinking strategies are aligned with Ferrexpo’s vision for the future, which revolves around sustainable growth, technological advancements, and con-

tinued success as a responsible mining company. By embracing modern technologies, cultivating strategic partnerships, and implementing sustainable practices, Ferrexpo is poised to remain a leader in the industry and contribute to the development of a sustainable mining sector.

Ferrexpo’s success extends beyond its borders, with the company’s commitment to growth clear in its expansion initiatives. By diversifying its geographical presence and entering new markets, Ferrexpo has set up itself as an international mining powerhouse. The expansion not only strengthens the company’s market position but also contributes to regional economic development and employment generation.

VISION FOR THE FUTURE

Ferrexpo Plc leadership in technology transformation, sustainability, and strategic partnerships has set it apart in the mining industry. The company’s commitment to innovation, alongside its efforts to minimise its environmental impact, positions them as a responsible and forward-thinking organisation. Through strategic partnerships with industry leaders like Zeppelin, Ferrexpo has access to the latest technologies, industry expertise, and market insights, ensuring its continued success. As it continues to expand and evolve, its sharp vision for the future revolves around sustainable growth, technological advancements, and a commitment to responsible mining practices.

As a leading producer of highgrade iron ore pellets that has a long and successful history and a promising future. The company operates in a challenging but

rewarding market, where it leverages its competitive advantages and opportunities to create value for its customers and stakeholders. The company is also committed to working in a safe, sustainable, and ethical manner, while contributing to the development and well-being of its host country, Ukraine. The vision outlook is centred on sustainable growth and innovation. The company aims to further optimise its operations through the integration of advanced AI and automation technologies. This vision aligns with Ferrexpo’s dedication to maintaining environmental integrity while achieving higher levels of efficiency and is well-positioned to achieve its goals and aspirations.