Fortescue updates Chichester Hub iron ore reserves

Australian miner Fortescue Metals Group (Fortescue) has announced the results of its annual review of its Chichester Hub iron ore reserves. The company stated that Chichester Hub located in the Pilbara region has reserves of 1.54 billion mt of iron ore, which comprises 38 million mt of proved and 1.50 billion mt of probable reserves. The average iron grade of the reserve is 58.28 percent.
 
On the other hand, the company has decided to change the basis for reporting Chichester Hub reserves from run of mine dry tons to product tons. Three years of mining and processing at Cloudbreak and over 18 months of mining and four months of processing at Christmas Creek allows Fortescue to make the transition to reporting product tons.
 
A reserve of 1.54 billion dry tons converts to approximately 1.70 billion wet tons of product. This indicates an approximate mine life average for the Chichester Hub of 19 years, assuming a production rate of 90 million wet tones per year.
 
In June 2010 Chichester Hub Reserves were reported based on run of mine dry tons at a total of 1.54 billion mt (98 million mt proved and 1.44 billion mt probable) at an average iron grade of 58.78 percent.