Poltava Iron Ore Expands Into China.

The company’s (PGOK: Pending) controlling shareholder, Ferrexpo A.G, inked a three-year contract for pellet sales with China’s Fujian San Steel. China’s share in Ferrexpo’s sales grew from 1% in 2004 to 12% in 2005. Andriy Gostik: Signing long-term contracts with Chinese steel mills is an important strategic step for PGOK’s shareholders, as it allows the company to both increase its presence in the world’s largest iron ore market and make up for the loss of the Russian market due to Russia’s spike in railway tariffs. However, we are concerned that an un-proportionally large share of profits from this contract will find their way into Ferrexpo’s pockets and never reach PGOK.