Fortescue reveals plans for US$9 billion expansion
On March 12, Australia's third biggest iron ore producer Fortescue Metals Group Ltd (Fortescue) revealed plans for the development of the Solomon resource that could cost up to US$8.9 billion.
The Perth-based company said during a presentation to stakeholders that the aim is an expansion of 60 million mt in the first stage and 100 million mt in the second stage, costing $US3.24 billion and $US5.7 billion respectively. The project in the iron ore-rich Pilbara region of Western Australia includes the construction of a new railroad and port.
According to the presentation, the company's iron ore operations in the Chichester Ranges produces 40 million mt iron ore a year and are expected to reach 55 million mt within 12 months and with further expansion to 95 million mt.
The company has a "medium term" production target of 355 million mt a year.
Analysts remain skeptical about how Fortescue will fund its expansion drive, international press reports said.
previous article 
