Business
Acquisition of stake in Ferrous Resources
Acquisition of stake in Ferrous Resources.
About this update from Ferrexpo Plc
[{"type":"text","content":"\n \nRNS Number : 2343O Ferrexpo PLC 18 September 2013 \n \n\n \n18 September 2013\nFerrexpo plc\n(\"Ferrexpo\", the \"Group\")\n \nAcquisition of stake in Ferrous Resources\n \nFerrexpo, 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. \n \nTotal consideration for the stake, which was acquired between January and September 2013, was approximately US$80 million. \n \nFerrous 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. \n \nThe 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. \n \nFor further information, please contact:\n \n\n\n\n\nFerrexpo: \n\n\n\n\n\n\n\nIngrid McMahon\n\n\n+44 207 389 8304\n\n\n\n\n\n\n\n\n\n\n\n\nBell Pottinger - Pelham\n\n\n\n\n\n\n\nCharles Vivian\n\n\n+44 207 861 3126\n\n\n\n\nJames Macfarlane\n\n\n+44 207 861 3864\n\n\n\n\n \nNotes to Editors:\n \nFerrexpo 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 Re...