Australia-based miner
Fortescue Metals Group Ltd has announced that it will resume works in January 2013 at the Kings deposit within the Solomon
mining hub in the Pilbara region of Western
Australia.
The decision to complete the development of the Kings deposit in the New Year came with the recent improvement in
iron ore prices and market outlook, along with a number of measures undertaken by
Fortescue, including the sale of non-core assets, a reduction in operating costs and the restructuring of existing bank facilities.
As SteelOrbis previously reported, in September this year
Fortescue announced the deferral of the Kings deposit project to secure the profitability and liquidity of the company in response to volatile market conditions and uncertainty over future
iron ore prices.
According to
Fortescue, the Kings deposit, that will produce 40 million mt of
iron ore annually, will contribute to
Fortescue's capacity expansion to 155 million mt per year.