FMG announces relocation of mine in Pilbara project
Further to SteelOrbis' story of July 15, Fortescue Metals Group (FMG) has announced that it will save millions of dollars by changing the site of its planned iron ore mine, enabling the company to enhance the feasibility of its planned $1.85 billion iron ore project in the Pilbara region of Western Australia. The new mine will now be located 100 kilometers closer to the company's Port Hedland iron ore export hub. Significantly lower transportation costs will have a positive impact on the company's planned development model due to the shorter railway line. In line with the new plan, FMG will focus its mining and development efforts on the Christmas Creek iron ore deposits within the company's expansive Chichester Ranges site, rather than the previously selected Mt Nicholas iron ore deposits. FMG plans to complete exploratory drilling of the remaining iron ore reserve targets at Christmas Creek by September 2005. So far, exploratory drilling has uncovered that Christmas Creek has at least three open pits, one of which will extend over four kilometers long by three kilometers wide. This relocation plan will substantially reduce the current estimated $410 million capital cost of the mine and processing components of the Pilbara Iron Ore and Infrastructure Project. In addition, long term cost saving benefits are also expected. As previously reported by SteelOrbis, Fortescue's Pilbara project includes an advanced A$1.85 billion ($1.34 billion) railway, mine, and port system in the Pilbara region of Western Australia.