Development capex

17 Sep 2007 12:00

Ferrexpo PLC17 September 2007 Ferrexpo PLC 17 September 2007 FERREXPO PLC - FIRST CAPITAL EXPENDITURE FOR THE YERISTOVSKOE MINE DEVELOPMENT Ferrexpo plc is pleased to announce that it has signed contracts for thepurchase of six new draglines for use in the development of its Yeristovskoeiron ore deposit. The draglines have been procured from Novo-KramatorskyMashinostroitelny Zavod Joint Stock Company (NKMZ), a Ukrainian manufacturer.Delivery of first equipment components is expected in mid March 2008, enablingstripping operations to commence by September 2008. The contracts and associatedcommitments represent an investment of $46 million. Mike Oppenheimer, Ferrexpo CEO, said: "This represents a critical first investment in the development of Yeristovskoeand the implementation of our integrated expansion project at Ferrexpo PoltavaMining (FPM). The specification and procurement process was managed by Ferrexpoin conjunction with our mining alliance partner DTP Terrasement, and thecontract was awarded in line with robust procurement policies introduced as partof our Business Improvement initiatives at FPM. We have been able to achieveattractive pricing for this crucial equipment, which is indicative of theprocurement opportunities available in Ukraine. This investment will allow us tocontinue to execute on our aggressive growth strategy as set out at our IPO." For further information, please contact: Ferrexpo: +44 207 389 8302 Gavin Mackay 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 90% 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