Ferrexpo's Ukrainian Unit Hit by $3.77B Civil Claim
(Reuters) -London-listed miner Ferrexpo said on Tuesday a civil claim worth 157 billion hryvnias ($3.77 billion) was filed against its Ukrainian unit, Ferrexpo Poltava Mining (FPM), in relation to alleged illegal mining and a sale of waste products.
Shares in the company slumped nearly 21% to a more than two-month low of 81.9 pence on the news.
"Initial accusations on the illegal sale of waste products have transformed into accusations that FPM is illegally mining and selling subsoil, which is said to have caused damage to the environment," Ferrexpo said.
The miner said FPM has rejected the allegations on the basis that there was "no illegal extraction of the subsoil".
Ferrexpo said that FPM is of the view that the accusations and claim are "without merit" and the unit intends to "vigorously defend" its position in the courts.
The exporter of iron ore pellets said its operations were unaffected by the legal case.
($1 = 41.6800 hryvnias)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Shinjini Ganguli and Maju Samuel)
