The Russian occupation of Ukraine has also begun to affect many mining companies whose operations are focused on Russia.
As Bloomberg News reported, Japan's Nippon Steel is considering alternative sources to purchase iron ore in Brazil and Australia to close the potential gap due to tensions between Russia and Ukraine.
The news agency, citing Takahiro Moris, vice president of Nippon Steel, stated that the firm currently imports 14% of its iron ore pellet raw material from Russia and Ukraine.
In response to the Russian invasion of Ukraine, the Luxembourg-based steelmaking company ArcelorMittal is shutting down production in its underground mines.
The Luxembourg Times reported that the firm said on Twitter that it would minimize operations at its Kryvyi Rih steel plant. The company employs more than 20,000 people in Ukraine.
According to Mining.com, the Russian invasion of Ukraine has also begun to affect several other mining companies operating in Russia.
In response to the situation in Ukraine, Polymetal, which is an Anglo-Russian precious metal mining company, said that it will continue its activities in Russia and Kazakhstan, while the sanctions announced so far have not affected the company.
The firm said that Ukraine's rapid deterioration significantly raises the possibility of additional and more severe sanctions by the EU, the UK and the US.
Polymetal said in a press release: “The rapid deterioration in the situation in Ukraine has significantly increased the likelihood of additional and more severe sanctions by the EU, UK and US.
The extent and impact of these new potential sanctions (and possible counter-sanctions) is not yet known, but could impact key Russian financial institutions and mining companies.”
Polymetal believes that targeted sanctions against the company are unlikely.
Comments
No comment yet.