KYIV, Feb 20 (Reuters) - Ukraine said on Thursday it had

moved to nationalise the Poltava mining and processing plant,

the largest mine belonging to London-based iron ore pellets

producer Ferrexpo ( FEEXF ), amid investigations into the alleged

misappropriation of funds related to illegal mining.

Ferrexpo ( FEEXF ) in recent years has had to navigate various

investigations into its main shareholder, sanctioned Ukrainian

businessman and former politician Kostyantyn Zhevago, as

Ukrainian authorities have tried to tackle corruption in a

crackdown that continued after Russia's invasion in 2022.

On Thursday, the Ukrainian state bureau of investigations

said it was preparing to lodge an appeal with Ukraine's justice

ministry at the High Anti-Corruption Court, requesting the

nationalisation of assets and corporate rights to the Poltava

plant.

It said that according to its investigations the plant's

management had misappropriated over 370 million hryvnias ($8.86

million), and that its property and corporate rights had been

frozen as part of pre-trial investigations.

Ferrexpo Poltava Mining (FPM) representatives did not

immediately reply to a comment request by Reuters.

"It is proposed to nationalise 541 real estate objects owned

by the plant, as well as 172 land plots that are under early

lease to the plant for 49 years," the bureau said in a

statement.

"It is also proposed that the court consider the transfer of

corporate rights for the amount of 49.5% of the authorised

capital of Poltava mining and processing plant to the state."

Ferrexpo ( FEEXF ) said in January it had noted media reports of

accusations by the Ukrainian prosecutor's office against senior

managers of its unit FPM over alleged illegal mining and sale of

waste products.

The group said operations were unaffected by the legal case,

and that FPM viewed the accusations as being "without merit".

Zhevago has repeatedly rejected accusations against him.