On May 20, Fortescue Metals Group, Australia's third-largest iron ore exporter, announced a maiden reserve estimate of 716 million metric tons for the first stage of its Solomon Hub project in Western Australia. The reserve comprises Brockman fines of 314 million mt and channel iron deposit fines of 402 million mt.
Fortescues COO Nev Power commented, "This maiden reserve for the Solomon Hub underwrites the large-scale development currently under way at Solomon to support the 60 million mt-a-year mine plan." He added that, as further drilling was undertaken, and considering the low strip ratio and operating costs, Fortescue expected the reserve number to double over time.
The Solomon Hub will play an extensive part in Fortescue's plans to ramp up production from its current 55 million mt a year to 155 million mt by 2014.
Fortescue has budgeted US$7.97 billion for the expansion plans, and around $2.3 billion is to be spent on the greenfield development of the Solomon stage one project, covering two operations at Firetail and Kings, along with related infrastructure.