Last checked at 18 Sep 2013 07:00
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/