CAPEX and new contract

7 Mar 2008 07:00

Ferrexpo PLC07 March 2008 FERREXPO PLC -FURTHER CAPITAL EXPENDITURE FOR THE YERISTOVSKOYE MINE DEVELOPMENTAND NEW LONG TERM CONTRACT Ferrexpo plc ("Ferrexpo") is pleased to announce that it has committed US$55million for the purchase of an initial fleet of mining dump trucks and relatedequipment required for the commencement of the overburden stripping operation atthe new Yeristovskoye mine development. The Board has approved the purchase ofsixteen 180-tonne capacity trucks and related equipment. Delivery is expected inmid November 2008. Ferrexpo is pleased to further announce that it has signed a long term supplycontract with a new export customer, located in close proximity to Ukraine,which is expanding iron and steel production. The contract is for the supply ofapproximately 1.3 million tonnes of iron ore pellets over the next three years. Mike Oppenheimer, Ferrexpo CEO, said: "The procurement of further mining equipment for the development ofYeristovskoye represents another critical investment in our major growthprojects, enabling us to keep to our aggressive mine development schedule. Ournew long term contract is of strategic importance, as it broadens our marketingnetwork to include yet another market where Ferrexpo enjoys a significantlogistical and competitive advantage. This is the latest in a series ofinitiatives to increase the number of customers in new markets that we supply interms of long term contracts, ahead of the planned acceleration of our majorgrowth projects." For further information, please contact: Ferrexpo: +44 207 389 8302 Finsbury: +44 207 251 3801 Robin WalkerAlex Simmons Notes to Editors: Ferrexpo is a Swiss headquartered resources company with assets in Ukraine,principally involved in the production and export of iron ore pellets, used inproducing steel. Current output is over 9 million tonnes, approximately 85% of which is exported to steelmakers around the world. The Group is currently undertaking a significant growth programme and listed on the main market of the London Stock Exchange in June 2007 under the ticker FXPO. For further information please visit www.ferrexpo.com. This information is provided by RNS The company news service from the London Stock Exchange