Fortescue sells Solomon power station

Australia's Fortescue Metals Group has announced the sale of the power station at its Solomon iron ore mine in the Pilbara region of Western Australia to a wholly-owned subsidiary of TransAlta Corporation for net proceeds of US$300 million.
 
At the same time, Fortescue has entered into a long-term power purchase agreement with TransAlta for 100 percent of the power station's capacity over the current life of the Solomon Mine which is expected to produce 60 million mt of iron ore per year
 
The sale subject to relevant approvals, including approval by Australia's Foreign Investment Review Board, is expected to be closed by the end of September 2012.
 
Following the sale of the 125 megawatt dual-fuel power station and cuts in expansion and workforce, Fortescue shares fell to the lowest level in over three years, dropping by almost nine percent.