The letter of intent (LoI) encompasses 10Mt/y of capacity on the rail line near the iron ore mine to move product to the deepwater Port Yuzhny on the Black Sea.

Black Iron said it has been renewing its LoIs for vital needs, including power and port capacity as well, ahead of the construction start at Shymanivske.

"Renewing the LoI with Ukraine's National Railway is an important step in providing assurance to current and future investors in our project," CEO Matt Simpson said.

"We are very fortunate to be able to access such high-quality infrastructure which is right on the doorstep of our project."

Black Iron will be taking a phased development path for Shymanivske, lowering both capital requirements and operating costs.

The miner said its expected product from the 100%-owned mine south-east of Kiev is a high-grade (68%) iron ore concentrate. Its resource estimate totals 646Mt measured and indicated mineral resources, and officials are aiming for 4Mt/y to start, with an expansion to 8Mt/y beginning in its third year of production.