Ferrexpo intends to start the first ore extraction at the end of 2012 at Yeristovo Mine.

The new mine will have an annual capacity of 28 million tonne of iron ore extraction, which will be further processed to 10 million tonne of iron ore concentrate. The mine is planned to reach 40 years of production at full capacity load.

Phoenix Capital analyst said that the news is marginally positive for FXPO.

They wrote “With this statement, Ferrexpo confirms that it’s slightly ahead of its scheduled expansion pipeline, initially having planned to start ore extraction at Yeristovo in 2013. FYM will be a natural extension of the Ferrexpo Poltava Mine (FPM), which is supposed to be in operation by 2038, after USD 168 million will be spent by 2017 on increasing its capacity and prolonging its lifetime. Regarding FYM, the company’s initial plan for 2013 was 5.5 million tonne of raw ore mining, producing 1.9 million tonne of pellets, but these projections may be improved with the earlier launch of the open pit.”

(Sourced from phoenix-capital.ua)