The UK-based company Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced that due to the uncertainties in the financial and commodity markets, it has deferred a decision on the investment in the expansion of its Yeristovskoye mine and the upgrading of beneficiation facilities at its Gorishne-Plavninskoye Lavrikovskoye mine. The decision on the project has been postponed until the end of the first quarter of 2009.
"Our planned activities through the first quarter of next year will enable us to maintain the momentum of our projects while giving us the opportunity to optimize capital estimates, explore funding opportunities and wait for the markets to settle," Ferrexpo CEO Mike Oppenheimer stated.
Ferrexpo has already invested $116 million in the Yeristovskoye project and is currently assembling the equipment to commence stripping works at the mine during November 2008. The first ore at the Yeristovskoye mine is scheduled to be produced by the end of 2011. By 2014 the mine is expected to reach its plateau production of 28 million mt of iron ore per year.
Moreover, within the framework of its strategic investor program, Ferrexpo continues to seek a partner for the development of its major growth projects and expects to conclude the process towards the end of Q4 2008.