Spurred by China's renewed growing appetite for iron ore plus gaining prices in the Asian market, Ukrainian iron ore miner Ferrexpo Plc has projected to increase its output generation of iron ore to 12 metric tonnes a year effective 2013.

On Wednesday, the Switzerland-based Ukrainian miner reported that 2011 full-year profit had risen 34 per cent to reach $567.8 million from $422.9 million a year ago. Corresponding sales volume jumped 38 per cent to $1.79 billion.

Of the overall 2011 sales, Ferrexpo Plc said transactions to Asia, particularly to China and Japan, contributed to a 40 per cent jump compared from the 27 per cent registered in 2010.

Ferrexpo Plc has strategically been moving more into the Asian market in a bid to loosen its dependence on the European markets where the continued debt crisis and falling consumer demand have strongly affected demand from steelmakers.

Listed on the London Stock Exchange, Ferrexpo Plc owns one of the mining world's largest iron ore resource bases. And being located in Ukraine has proven to be a most welcome strategic edge as it gives a shorter shipping distance to key destinations such as Shanghai and Hong Kong.

In 2011, the benchmark price for iron ore imported to China, the world's largest consumer of the material, averaged $167.60 a metric tonne, from $146.70 a tonne in 2010, Bloomberg News reported, citing data from The Steel Index.

Ferrexpo Plc said projects to aid capacity improvement plans were on track. It said it does not expect much to invest on capital expenditure this year, compared from the $378 million spent in 2011. But the company, however, remained realistic, saying spending might still rise this year if the board approves a proposal to increase output to 20 million tonnes.