Fortescue, Taiwanese partner approve $2.6 bln for stage 2 of iron ore project
(Adds CEO comment, annual production, background)
April 2 (Reuters) - Fortescue Metals Group Ltd on
Tuesday said its unit FMG Magnetite Pty Ltd and Taiwanese
partner Formosa Steel IB Pty Ltd will spend about $2.6 billion
to develop the second stage of a magnetite iron ore project in
FMG Iron Bridge Ltd, in which the world's fourth-largest
iron ore miner holds an 88 percent stake, will invest a total of
$2.1 billion on the project.
"The Iron Bridge Project will deliver a premium product with
iron content of 67 percent," FMG Chief Executive Officer
Elizabeth Gaines said in a statement.
"When combined with the Eliwana development, it will
increase Fortescue's average product grade and provide the
ability to deliver the majority of our products at greater than
60 percent iron content, consistent with our long term goal,"
Fortescue, which was hit by falling prices for its lower
grade iron ore in 2018 as Chinese steel mills turned to
higher-grade, less-polluting iron ore, has been trying to grow
margins with a new, higher grade product.
The miner said the project will produce 22 million wet
metric tonnes a year when it is running at full operational
Fortescue expects to make delivery of first ore in the first
half of calendar year 2022.
(Reporting by Aditya Soni in Bengaluru; editing by Richard
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