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Thursday, January 19, 2012

FMG considers magnetite joint venture

Thu, 19 Jan 2012

It is reported that Fortescue Metals Group is considering developing its North Star magnetite iron ore project in Western Australia as a joint venture.

Fortescue last year indicated that it may spin off its magnetite iron ore assets because it was focused on easier-to-produce hematite iron ore.

However, on Monday the company said it saw potential value in developing its magnetite interests as joint ventures.

The miner said it was evaluating options to partner with third parties at its North Star magnetite project, which was adjacent to the company's Glacier Valley magnetite iron ore joint venture with Chinese steel maker Baosteel.

Fortescue said in a statement that any development of North Star would be on a non-recourse basis to Fortescue balance sheet

The company also announced a 72% increase in the resource estimate for its North Star magnetite project, 100 kilometres south of its Port Hedland operation to 2.12 billion tonnes.

Of that total, 1.3 billion tonnes is in the inferred category of Australia mineral reporting code which is the least proved up category.

Just over 100 million tonnes is in the top category and measured.

(Sourced from

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