Shares of UK-based iron ore producer Ferrexpo (LON:FXPO) jumped over 13% on Friday following reports that the Ukrainian government is seeking to nationalize its key asset, the Poltava Mining and Processing Plant. The move comes amid allegations of fund misappropriation linked to illegal mining activities.
The State Bureau of Investigations has filed an appeal with the High Anti-Corruption Court to transfer 49.5% of the plant’s authorized capital to state ownership. In addition, authorities have frozen the plant’s assets as investigations continue. Ferrexpo, however, stated that it has not received any formal notification regarding these claims and is working closely with its legal team to assess the situation.
The stock’s sharp rise suggests a mixed response from investors. While some may perceive the nationalization effort as a political maneuver rather than a direct financial threat, others speculate that short sellers covering their positions contributed to the surge. Ferrexpo’s stock had previously been under pressure due to the ongoing war in Ukraine and operational uncertainties.
Despite the uncertainty, the global iron ore market remains resilient, and Ferrexpo’s long-term assets—including its significant reserves and 50-year mine life—continue to attract investor interest.
