Ferrexpo acquires USD 84 mln in equipment for pellet quality upgrade

Finnish company Metso announced yesterday that it will supply Ferrexpo (FXPO LN) with an equipment aimed at increasing pellet quality. The deal is a part of a major CapEx project, enabling Ferrexpo to produce 12 mmt pellets of 65% grade p.a. vs. 5 mmt currently (the rest being 62% grade). The value of the agreement is EUR 67 mln (USD 84 mln), including two previously signed contracts, worth EUR 36 mln. The agreement represents 40% of Ferrexpo’s USD 212 mln budgeted amount for the project, which is to be finalized in 2014.