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Ferrexpo Group to start €300 mln project in Hungary

A Ukraine-based arm of Switzerland's Ferrexpo Group is to embark on a €300 million project in Hungary in the spring of 2007 to build a steel works and an industrial park in the area of Záhony, a border city with Ukraine. According to plans this will be Hungary's largest steel works with an annual output capacity of three million tons of rolled steel, business daily Világgazdaság reported on Tuesday. The construction plans of the Záhony area are expected to land on the government's table in October. The exact location of the project is not yet known, but the plant is to offer jobs for 800-1,000 people from the end of the decade at the earliest.

Ferrexpo Poltava Mining is the largest iron ore pellets producer in Ukraine and a major exporter of iron ore pellets to Europe among CIS's countries (44 % of total CIS export sales). Every other ton of Ukrainian pellets is produced by Poltava Mining and delivered to metal plants of the Southern Ukraine or exported to Europe. At present more than 85 % of total production is exported to Austria, Romania, Poland, Bulgaria, Czech Republic, Slovakia, Yugoslavia, Italy and Hungary. Poltava Mining has been producing 177 million tons of pellets; 291 million tons of an iron ore concentrate and mined 692 million tons of iron ore during its 30 years of operating activities. The natural resource base of the Poltava Mining includes the following ferruginous quartzite deposits of the Kremenchuk magnetic anomaly: Gorishne-Plavninskoye, Lavrikovskoye and Yeristovskoye. The reserves of these deposits comprise about 2.4 billion tons of ferruginous quartzite. (Portfolio,