18th Sep 2013 06:14
LONDON (Alliance News) - Switzerland-based iron ore pellet producer Ferrexpo plc (FXPO.L) reported acquiring a 14.4% strategic stake in Ferrous Resources, a producing iron ore company operating in the iron ore quadrangle of the Minas Gerais region of Brazil.
Total consideration for the stake, that was bought between January and September 2013, was nearly $80 million. Ferrous has a 4 billion tonne JORC compliant reserve and resource base. It had a production run rate of some 5 million tonnes per annum of 62% Fe iron ore fines, as of June 2013.
Ferrous has all permits in place to expand output to 15 million tonnes a year. 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.
Copyright RTT News/dpa-AFX
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