September 18, 2013 / 6:50 AM / in 5 years

Ferrexpo acquires $80 million stake in Brazilian miner

LONDON (Reuters) - Ukraine-focused iron pellet producer Ferrexpo (FXPO.L) said on Wednesday it had acquired an $80 million stake in a Brazilian miner, as the firm attempts to expand beyond Eastern Europe.

The FTSE 250 company said in a statement it had taken a 14.4 percent stake in Ferrous Resources, a privately-owned Brazilian producer with expansion plans in the mineral-rich state of Minas Gerais.

Ferrexpo, majority owned by Ukrainian billionaire and parliamentarian Kostyantin Zhevago, has been embroiled in a long-winded legal battle over the ownership of its Poltava mine with analysts identifying political risk in Ukraine as a key challenge for the company.

The stake also gives Ferrexpo a foothold in the country of its main pellet-making competitor, mining major Vale VALE5.SA.

Ferrous Resources, which currently produces around 5 million tonnes per annum, has permission to expand to 15 million tonnes.

Reporting by Stephen Eisenhammer; editing by Kate Holton

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below