Fortescue upgrades Solomon reserve estimate by 300 million mt

Friday, 19 March 2010 13:45:50 (GMT+2)

Australia's third biggest iron ore miner Fortescue Metals Group (Fortescue) has increased the iron ore estimate at its Solomon project in the country's iron ore-rich Pilbara region by 300 million mt.

According to a Fortescue statement, the total resource portfolio of the project has been upgraded to 2.7 billion mt with the additional estimated resource, targeting an output of 60 million mt per annum in the first stage.

The targeted minimum mine life is in excess of 20 years of production and the company is confident that the mine can achieve the target.

The Solomon reserve is located in the Hamersley Ranges to the west of Fortescue's Cloudbreak and Christmas Creek mines in the Chichester Ranges, where it targets an output of 95 million mt a year by 2012. Solomon will be the third mine of the company.

Exploration work commenced at Solomon in 2007 and a definitive feasibility study was initiated in 2009 which will culminate in a report delivered to the Fortescue board of directors by the end of 2010.

As SteelOrbis previously reported, on March 12 the company revealed its aim to expand the Solomon resource to 60 million mt in the first stage and to 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.

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