Ferrexpo increases pellet output by 6.5 percent in Jan 2011, targets expansion

Swiss-headquartered resources company Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced that in January 2011 its overall pellet production increased by 6.5 percent year on year to 810,100 mt, although it was three percent lower compared to December 2010.
 
In the first month of this year, Ferrexpo's pellet production from its own raw materials was in line with the same period last year, amounting to 740,100 mt, while its pellets production from third party concentrate saw a significant increase of 248.3 percent year on year to 70,000 mt, aimed at meeting ongoing higher demand.
 
Meanwhile, in January 2011, Ferrexpo registered a 3.9 percent decrease year on year in its iron ore production to about 2.409 million mt, while its iron ore concentrate production saw a one percent rise year on year to 932,400 mt.
 
Ferrexpo invests to increase pellet output to 20 million mt by 2018
 
In 2010, Ferrexpo produced 10.03 million mt of pellets from 28.93 million mt of iron ore mined. According to a report from Edison Investment Research, in its interim management statement Ferrexpo has mapped out a plan to increase annual output first to 12 million mt of 65 percent pellets from 38 million mt per year of iron ore by 2013 and then to 20 million mt of pellets from 60 million mt per year of iron ore by 2018 "at the latest". Ferrexpo management has approved a budget of $647 million to achieve the first phase of this development. The second phase will cost an additional sum of approximately $1.2 billion.