PRESS: Ukraine moves to nationalise Ferrexpo's Poltava mine – Reuters

(Alliance News) - Ukraine has moved to nationalise the Poltava mining and processing plant, the largest asset of Ferrexpo PLC, amid an investigation into alleged misappropriation of funds related to illegal mining, Reuters reported on Thursday.

In response, Ferrexpo shares tumbled 30% to 70.00 pence in London on Thursday afternoon.

The Ukrainian State Bureau of Investigations said it is seeking a court ruling to transfer the plant's assets and corporate rights to the state, citing the alleged misappropriation of UAH370 million, around USD 8.86 million. The bureau added that property and corporate rights at the site had been frozen as part of a pre-trial investigation.

Earlier this month, the company was hit with a USD3.76 billion civil claim against its subsidiary Ferrexpo Poltava Mining. The claim alleges that FPM was engaged in illegal mining and subsoil extraction, causing environmental damage. Ferrexpo has rejected the allegations, stating that all mining activities comply with its licence and environmental regulations.

The company said in January that its operations remained unaffected by the legal case and described accusations against FPM as "without merit."

Ferrexpo representatives did not immediately respond to Reuters' request for comment.

By Eva Castanedo, Alliance News reporter

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