Fortescue expands Solomon production target

Production and Markets

Publishing Date: 12 Mar 2010 12:55pm GMT
Author: Mining Journal

West Australian iron-ore producer Fortescue Metals Group has upped the production target for its third mine and planted a US$8.9 billion price on the next stages of its expansion.

Chief executive officer Andrew Forrest, presenting at the Goldman Sachs JB Annual Australasian Investment Forum in New York, revealed the company was planning to increase the output at the Pilbara-based Solomon mine to 160Mt/y.

Originally, Fortescue was targeting 60Mt/y at the mine and would later boost that production to 100Mt/y.

Stage one of the expansion is expected to cost US$3.24 billion and stage two is priced at US$5.7 billion, the company said.

The presentation also covered Fortescue’s vision of a third rail hub in the region called ‘The Western Hub’.

The new rail would accommodate the company’s planned magnetitie operations by connecting it with the proposed Anketell Point port.

West Australian Premier Colin Barnett last week announced plans for the port construction at Anketell, which is 30km east of Karratha in the Pilbara.