Fortescue announces port and plant shutdown for upgrading program

Australia's Perth-based miner Fortescue Metals Group (Fortescue) has announced the shutdown of its Pilbara port and mine processing facilities under an optimization program aimed at increasing infrastructure capacity to 55 million mt per annum and also at refining the company's product offering to best meet Chinese demand for "value in use" material.
 
The shutdown will last for about ten days from November 17, lowering the company's 2008 production target of 22 million mt.
 
According to Fortescue, the short-term impact of the shutdown will be for lower tonnages over the immediate term which will impact the overall performance for calendar year 2008. Going forward, the medium-term outcome will be higher production and loading volumes and efficiencies to be timed for a return to more normal market demand conditions expected for 2009 and beyond.
 
The company has recently delayed its plan to expand to 80 million mt per annum due to reduced demand for iron ore from China. It previously planned to reach 80 million mt in calendar year 2009 but is now targeting the 2009-2010 financial year.