FMG is full steam ahead with its rail expansion. Take a look at the recent Financial Review article
Fortescue Metals Group has commissioned the Hamersley rail linking its new Solomon Hub of mines to Port Hedland, as it looks to expand its iron ore production by 20 million tonnes a year from the first mine at Firetail.
The miner said it is still evaluating options for adding the 40 million tonne a year Kings deposit by the end of next year, work on which was slowed as the market downturn crimped margins in September.
“The company will consider accelerating the development at the end of this calendar year, with a view to reaching its target of 155 million tonnes a year by the end of 2013,” Fortescue said in a statement.
Fortescue chairman Andrew Forrest said the Hamersley rail was “a historic achievement” and a testament to the company’s future as a major player in iron ore.
“As the major tenement owner and recently its most prolific and successful explorer, we’ve achieved in years what took our competitors decades,” Mr Forrest said.
“This, in large part, is due to the modernisation and urbanisation of China and Asia. However, at least as fundamentally, it is thanks to the dedication, brilliance and the can-do attitude of our people.”
Fortescue will ramp up the Firetail ore processing facility in March next year, at which time it expects to be running 11 trains a day from its three operations at Cloudbreak, Christmas Creek and Solomon.
Falling iron ore prices earlier this year cast a shadow over Fortescue’s ability to complete the ambitious expansion plans and produce an adequate return on its debt-heavy investment.
But Fortescue worked with its lenders to restructure and add to its loans to increase its balance sheet flexibility.
On Friday, iron ore prices ended the week 2.24 per cent lower at $US115.60 a tonne as China approaches a seasonal slowdown in construction and a lack of access to finance crimps the steel trade.
The Australian Financial Review
http://afr.com/p/business/companies/fortescue_commissions_hamersley_2KOgrQGQDCVZCPtKrqe3sN