Australian iron ore miner Fortescue Metals Group Ltd (Fortescue) has announced that its subsidiary FMG Magnetite Pty Ltd and joint venture partner Formosa Steel IB Pty Ltd (Formosa) have approved the development of stage 2 of the Iron Bridge Magnetite Project.
First iron ore delivery from stage 2 is expected in the first half of the calendar year 2022, ramping up to full production within 12 months. The project for stage 2 worth $2.6 billion is scheduled have an annual production of 22 million wet mt (equivalent to 20 million dry mt) per year once full operational capacity is achieved.
The company said that five binding off-take agreements have been concluded for 5.3 million mt per year, indicating that there will be strong demand.
Last week, speaking at the Boao Forum forum in China, Fortescue CEO Andrew Forrest said that Fortescue cannot promise to fulfill the iron ore supply deficit caused by the production loss at Vale following the iron ore dam collapse in Brazil.
