Ferrexpo PLC Acquisition of stake in Ferrous Resources (2343O)
18 September 2013 - 8:00AM
UK Regulatory
TIDMFXPO
RNS Number : 2343O
Ferrexpo PLC
18 September 2013
18 September 2013
Ferrexpo plc
("Ferrexpo", the "Group")
Acquisition of stake in Ferrous Resources
Ferrexpo, the FTSE 250 iron ore pellet producer, today announces
that it has acquired a 14.4% strategic stake in Ferrous Resources
('Ferrous'), a producing iron ore company operating in the iron ore
quadrangle of the Minas Gerais region of Brazil.
Total consideration for the stake, which was acquired between
January and September 2013, was approximately US$80 million.
Ferrous has a 4 billion tonne JORC compliant reserve and
resource base. As of June 2013, it had a production run rate of
approximately 5 million tonnes per annum of 62% Fe iron ore
fines.
The investment represents access to a good quality asset in a
major iron ore producing region. Ferrous has all permits in place
to expand output to 15 million tonnes per annum and has a
well-regarded senior management team. It also allows Ferrexpo the
opportunity to extend its marketing knowledge to include iron ore
fines and share its extensive experience in the beneficiation of
iron ore, a process which is increasing in the Minas Gerais region
of Brazil.
For further information, please contact:
Ferrexpo:
Ingrid McMahon +44 207 389 8304
Bell Pottinger - Pelham
Charles Vivian +44 207 861 3126
James Macfarlane +44 207 861 3864
Notes to Editors:
Ferrexpo plcis a Swiss headquartered iron ore company with
assets in Ukraine. It has been mining, processing and selling high
quality iron ore pellets to the global steel industry for over 35
years. Ferrexpo's resource base is one of the largest iron ore
deposits in the world. In 2012, the subsidiary, Ferrexpo Poltava
Mining (FPM), produced 9.3 million tonnes of iron ore pellets,
while first ore was reached at the new Ferrexpo Yeristovo Mining
(FYM) open pit. Ferrexpo was the largest exporter of pellets in the
CIS in 2012. The Group has a diversified customer base supplying
steel mills in Austria, Slovakia, Czech Republic, Germany and other
European states, as well as in China, India, Japan, Taiwan and
South Korea. Ferrexpo is listed on the main market of the London
Stock Exchange under the ticker FXPO. For further information,
please visit www.ferrexpo.com
Ferrous Resources do Brasil, is a private Brazilian Iron Ore
company, founded in 2007, with a 4 billion tonne reserve and
resource base. In 2012, it produced 2.9 million tonnes of 62% Fe
fines and expects to produce approximately 5 million tonnes in
2013. It is fully permitted to expand production to 15 million
tonnes per annum at its flagship asset the Viga deposit which
contains 564 million tonnes of measured resources and 1,537 million
tonnes of mineral resources, with an average in situ grade of 35.8%
Fe. Its other assets, Viga Norte (Itabirito), Serrinha (Brumadinho)
could increase total production up to 40 million tonnes per year
although these are at an early development stage. The assets are
well located in the iron ore quadrangle, with the Viga mine
benefitting from direct access to the MRS rail infrastructure which
transports ore to the Sepetiba port 450 kilometres away. For
further information, please visit www.ferrous.com.br/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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