The UK-based company Ferrexpo, whose main interests are in Ukrainian iron ore assets, plans in 2009 to invest $20 million in stripping operations at its new open pit at the Yeristovskoye iron ore field, Ukrainian news agency Interfax has reported citing Ferrexpo's business development manager Gavin Mackay.
Accordingly, the stripping operations in question will be carried out using new equipment that was acquired earlier.
Ferrexpo's investments in its Yeristovskoye project and in the modernization of beneficiation capacities at its Gorishne-Plavninskoye Lavrikovskoye mine amounted to $100 million before the investment projects were frozen due to the problems in the commodities markets.
"We're now at a stage when the construction of the facilities to produce pellets and concentrates does not take much time, as the equipment for that can be delivered fairly quickly, and the project can be started once the need arises. Stripping, though, does take time; it can take years, so we plan a $20 million investment for this in 2009," Mr. Mackay said, adding the amount might be adjusted, depending on circumstances.
Ferrexpo expects its Yeristovskoye iron ore field to produce its first ore by the end of 2011 and to achieve a sustained rate of extraction of 28 million mt annually by 2014.