Ukraine's Ferrexpo shares rise on strong first-half iron ore output

LONDON, July 3 (Reuters) - Shares (Berlin: DI6.BE - news) in Ukrainian iron ore producer Ferrexpo (Other OTC: FEEXF - news) rose as much as 4 percent in early trade in London on Friday after the company posted a strong increase in iron ore pellet for the first half of the year.

The company, majority owned by Ukrainian billionaire and politician Kostyantin Zhevago, produced 5.8 million tonnes of iron ore pellet in the first half, 8.3 percent up from the first half last year.

The Swiss-headquartered firm, which has so far experienced only minor disruptions due to the separatist conflict in eastern Ukraine, has increased in particular its high iron-ore content pellet, which sells for a premium price because of its quality.

Benchmark iron ore prices have fallen by more than a third from their 2011 highs of about $190 a tonne.

Ferrexpo produced 11 million tonnes of iron ore pellets in 2014 and expects to produce between 11.5 and 11.6 million this year.

Its shares were up 1.1 percent at 66.75 pence by 0813 GMT, outperforming a 0.8 percent fall in the UK-listed mining sector, after initially rising as high as 68.50p. (Reporting by Silvia Antonioli; Editing by David Holmes)