December 02, 2008

Ferrexpo looking for partners for Ukraine iron ore mines

It is reported that Ferrexpo has started looking for a partner to help it build new iron ore mines in Ukraine as part of its aim to more than double its current production.

Mr Mike Oppenheimer CEO of the mining group said it had already planned to double its output of iron ore and iron ore pellets by 2014, but now we are looking at opportunities to be more aggressive.

Mr Oppenheimer said only a small portion of the Poltava ore body had so far been exploited. We are not limited by resources we are sitting on iron ore it's a question of how quickly we can get new projects up and running. Ferrexpo could fund some of the expansion itself, but if we want to push this forward aggressively we need assistance, financially and operationally.”

Mr Oppenheimer said the group is in the very early stages of contact with a variety of different parties that could invest in the Poltava expansion projects and was especially interested in partnerships with companies that can plan and execute big capital projects.

Ferrexpo produced 14.4 million tonnes of iron ore in the first half of the year, which it turned into 4.7 million tonnes of iron ore pellets which are used in steelmaking. Revenues rose 39% to USD 328 million, while pre-tax profits increased threefold to USD 54.5 million thanks to a production increase and higher prices.