On November 19, Australian iron ore miner Fortescue Metals Group Ltd (Fortescue) said that it has approved plans to expand its annual production from 55 million mt to 155 million mt, through an investment of US$8.4 billion.
"This decision will enable Fortescue to leverage its existing infrastructure and its
massive land holding across the Pilbara to exponentially increase product sales within
key markets of Asia, Europe and Australia," Fortescue's CEO Andrew Forrest said.
The total capital expenditure budget, for construction of the infrastructure platform
together with the procurement of the materials handling equipment is US$8.4 billion, including US$4.6 billion for the expansion of the existing port, train unloader and the main
line rail network, and construction of the new rail line to the Solomon mining area, US$1.5 billion for the brownfield development of the existing Chichester mines to lift total Fortescue production to 90 million mt across the Cloudbreak and Christmas Creek mining operations and finally US$2.3 billion for the greenfield development of Solomon Stage 1 covering two mining operations at Firetail and Kings together with related infrastructure.