Fortescue: No problem on Pilbara project

Fortescue: No problem on Pilbara project

Australian Fortescue Metals Group's CEO Andrew Forrest said the company is not severely underestimating cost increases for its Pilbara iron ore project in Western Australia, contrary to the rumours. According to Forrest, the development of the project would cost more than A$2 billion (US$1.56 billion), while the estimate cost in the feasibility study was calculated as A$1.85 billion. The cost required a revision due to 5 to 10% operating and capital cost increases per annum. Forrest claims, cooperation with Chinese companies would keep the costs of the project low. The share prices of the company have fallen 55% since March 24 , when China Metallurgical Construction Corp. (CMCC) expressed doubts over the future of the project on.