Ferrexpo buys stake in Ferrous Resources

18th Sep 2013 07:06

Iron ore pellet producer Ferrexpo has bought a 14.4 per cent interest in Ferrous Resources.The company purchased the iron ore producer, which operates in the Minas Gerais region of Brazil, for a total consideration for $80m.Ferrous has a 4bn-tonne Joint Ore Reserves Committee (JORC) compliant reserve and resource base. It had a production run rate of approximately 5m tonnes per annum of 62% iron ore fines at the end of June. "The investment represents access to a good quality asset in a major iron ore producing region," Ferrexpo said in a statement. "Ferrous has all permits in place to expand output to 15m 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."RD