Black Iron selects EPCM contractor for its mining complex

Обзоры по компаниям и отраслям 21.08.2013 Black Iron (BKI CN) reported on August 20 that it selected the Fluor Transworld Services company as its main engineering, procurement and construction management contractor (EPCM). The company is preparing to commence detailed design and construction of the Shimanivske Iron Ore Mining Complex. Roman Topolyuk: The selection of an EPCM contractor is the first step in iron ore development projects after the company announced in July an agreement with Metinvest (METINV) to develop the Shymanivske and Zelenivske iron ore deposits jointly. However, even more significant drivers will be the expected acquisition of additional, required land plots for its production facilities, as well as the obtaining of approvals from authorities. The success of these developments will spur the raising of debt financing (to up to 60% of the total estimated CapEx of USD 1.1 bln), as well as the conclusion an off-take agreement. Black Iron trades at a EV/resources multiple of 0.03 USD/t, which is a 50-60% discount to junior iron ore companies.