Poltava ore-dressing and processing enterprise (PGOK), controlled by British mining company with assets in Ukraine Ferrexpo plc, has signed an option by the end of 2014 to buy 500 wagons from Stakhanov wagon plant (Luhansk region) at a price of $70,000-110,000 (excluding VAT), according to a report by Ferrexpo on the exchange.
The cost of cars will vary depending on the batch. The maximum cost on the option is estimated at $66 million (including VAT).
PGOK intends to finance the transaction at its own expense or through signing leasing agreements with one of the leading Ukrainian banks.
Wagons are to be purchased due to the expected growth in pellet production. PGOK plans in 2014 to reach a figure of 12 million tonnes of pellets per year.
The transaction is subject to approval at an annual meeting of Ferrexpo’s shareholders scheduled for May 24, 2012, reads a statement.
