Long term sales contract with

RNS Number : 6308X

Ferrexpo PLC

09 December 2010

 



9 December 2010

Ferrexpo plc

("Ferrexpo", the "Group" or the "Company")

Long term sales contract with JFE Steel

Ferrexpo is pleased to announce that it has entered into a long term agreement with JFE Steel ("JFE") commencing 2010 for the delivery of approximately 300 thousand tonnes of 65% iron content pellets per annum. JFE is a technology leader in the production of sophisticated steel products. It is the fifth largest steel producer in the world producing 25.8million tonnes of steel in 2009.

This is Ferrexpo's first long term contract in Japan and it is consistent with the Group's strategy to build relationships with first class Asian steel mills ahead of its planned Yeristovo mine expansion.

Michael Abrahams, Chairman, commented:

"We are delighted to have secured our first contract in Japan with a customer of such high caliber. We believe Ferrexpo is the first iron ore producer in the CIS to negotiate a long term contract with a Japanese steel mill. Ferrexpo sent trial cargoes to JFE in 2007 and 2009 as part of its strategy to diversify its customer base and to position itself as a credible iron ore pellet supplier to the major steel mills. We look forward to a long and productive relationship with JFE."

For further information, please contact:

Ferrexpo:
Ingrid McMahon	[phone]
Pelham Bell Pottinger
Charles Vivian	[phone]
James MacFarlane	[phone]

Notes to Editors:

Ferrexpo is a Swiss headquartered resources company with assets in Ukraine, principally involved in the production and export of iron ore pellets, used in producing steel. Current output is approximately 9 million tonnes, which is exported to steelmakers around the world. The Group is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information please visit www.ferrexpo.com.

 

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