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Investing.com -- Iron ore producer Ferrexpo (LON:FXPO) reported a 40% sequential decline in second-quarter production on Monday, as suspended tax refunds in Ukraine squeezed the company’s liquidity.
The miner’s shares fell 2.5% following the announcement.
Ferrexpo stated it had to reduce operations due to financial constraints after Ukrainian tax authorities suspended $31 million in value-added tax (VAT) refunds from January to April.
To maintain financial viability, the company has placed approximately 37% of its workforce on reduced working hours or furlough.
Ferrexpo also cut procurement of goods needed for production operations.
The company’s Poltava Mining unit is currently facing potential bankruptcy proceedings, according to the announcement.
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