Monday, 19 Mar 2012
Fortescue Metals Group chief executive Mr Nev Power sees iron ore prices holding between USD 120 and USD 150 per tonne in the near term, on Thursday after the company raised USD 2 billion to help fund a tripling in its iron ore capacity.
Source - Reuters
Showing posts with label FMG. Show all posts
Showing posts with label FMG. Show all posts
Monday, March 19, 2012
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 news.ninemsn.com.au)
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 news.ninemsn.com.au)
Friday, December 9, 2011
FMG chairman Mr Forrest sees more iron ore price volatility
Friday, 09 Dec 2011
Fortescue Metals Group, Australia's third biggest exporter of iron ore, sees strong prices for the steelmaking ingredient in 2012 with potential for quick declines similar to those seen this year.
Mr Andrew Forrest chairman of FMG said that "Prices will be reasonably strong, but don't be surprised if there's a couple of sudden dip. I call reasonable anything above USD 100. That's a good sustainable iron ore price."
Prices for the steelmaking raw material delivered into China slumped in October, falling 31% for the month, including the biggest one day drop in more than two years as demand waned. Rio Tinto Group, the second biggest exporter, last week said some Chinese buyers have had credit difficulties while customers are still purchasing all its output.
Mr Forrest said that "All of our customers have been very strong and I would point out that Chinese growth has collapsed to over nine per cent. If any other economy had over nine per cent they would all be drinking champagne."
China's economy grew by 9.1% in the third quarter as compared with a year earlier, the slowest pace in two years. The credit tightening policy has curbed demand and prompted local mills including Baoshan Iron & Steel Co. to cut prices. The debt crisis in Europe has raised concerns that economic growth may slow in emerging countries.
Mr Forrest, who controls about 32% of Fortescue, which has a market value of AUD 15 billion, said that "Fortescue's in a unique position in that it's very popular in China."
Since October 31st 2011, the price of ore delivered to China's Tianjin port has rebounded 18%. It dropped 0.1% to USD 139.40.
(sourced from Theage.com.au)
Fortescue Metals Group, Australia's third biggest exporter of iron ore, sees strong prices for the steelmaking ingredient in 2012 with potential for quick declines similar to those seen this year.
Mr Andrew Forrest chairman of FMG said that "Prices will be reasonably strong, but don't be surprised if there's a couple of sudden dip. I call reasonable anything above USD 100. That's a good sustainable iron ore price."
Prices for the steelmaking raw material delivered into China slumped in October, falling 31% for the month, including the biggest one day drop in more than two years as demand waned. Rio Tinto Group, the second biggest exporter, last week said some Chinese buyers have had credit difficulties while customers are still purchasing all its output.
Mr Forrest said that "All of our customers have been very strong and I would point out that Chinese growth has collapsed to over nine per cent. If any other economy had over nine per cent they would all be drinking champagne."
China's economy grew by 9.1% in the third quarter as compared with a year earlier, the slowest pace in two years. The credit tightening policy has curbed demand and prompted local mills including Baoshan Iron & Steel Co. to cut prices. The debt crisis in Europe has raised concerns that economic growth may slow in emerging countries.
Mr Forrest, who controls about 32% of Fortescue, which has a market value of AUD 15 billion, said that "Fortescue's in a unique position in that it's very popular in China."
Since October 31st 2011, the price of ore delivered to China's Tianjin port has rebounded 18%. It dropped 0.1% to USD 139.40.
(sourced from Theage.com.au)
Friday, November 18, 2011
FMG sets new record for iron ore shipment
Friday, Nov18, 2011
Perth Now reported that Fortescue Metals Group has claimed BHP’s crown for shipping the biggest load of iron ore to ever leave Port Hedland.
Chinese iron ore behemoth MV Wugang Innovation was loaded with 247,906 tonnes of iron ore recently.
According to the Port Hedland Port Authority, FMG topped the previous record, set by BHP in June, by around 48 tonnes.
Mr N Power CEO of FMG said that the company had been breaking records across the port in recent weeks loading the highest number of tonnes in a 24 hour period through a single ship loader (210,981 tonnes) breaking the record for the highest number of tonnes loaded through a single shiploader over a seven day period (1.365 million tonnes).
Mr Power said the record setting is an examples of the company’s “can do” attitude.
(sourced from perthnow.com.au)
Perth Now reported that Fortescue Metals Group has claimed BHP’s crown for shipping the biggest load of iron ore to ever leave Port Hedland.
Chinese iron ore behemoth MV Wugang Innovation was loaded with 247,906 tonnes of iron ore recently.
According to the Port Hedland Port Authority, FMG topped the previous record, set by BHP in June, by around 48 tonnes.
Mr N Power CEO of FMG said that the company had been breaking records across the port in recent weeks loading the highest number of tonnes in a 24 hour period through a single ship loader (210,981 tonnes) breaking the record for the highest number of tonnes loaded through a single shiploader over a seven day period (1.365 million tonnes).
Mr Power said the record setting is an examples of the company’s “can do” attitude.
(sourced from perthnow.com.au)
Tuesday, October 25, 2011
Nimble FMG puts pressure on larger rivals in iron ore race
Tuesday, 25 Oct 2011
It is reported that the push to quickly ramp up iron ore production in Western Australia vast Pilbara region is very much a race between the nation three big iron ore miners Rio Tinto, BHP Billiton and Fortescue Metals Group.
The prize for faster expansion is longer access to windfall prices, which will probably fall as new supply emerges. Tonnes brought to market later will get lower prices.
Mr Nev Power CEO of Fortescue said "The sooner you can bring more volume into the market, the sooner you enjoy the high prices and high returns. He said that but every tonne that comes into the market will start to ease the supply bottleneck and therefore bring the price down."
Mr Power who took the chief executive job from Fortescue founder and major shareholder Andrew Forrest in July is continuing a strategy already in place when he joined. He said that "Our current strategy is very much about taking the opportunity of this strong demand out of China and responding to that with very rapid development and ramp-up of our projects.”
He added that "We recognize that these opportunities don't last forever and we recognize that the strong growth of China needs to be satisfied. Therefore the primary plank of our strategy has been to get in very quickly and meet that demand and to fuel that growth."
Fortescue has approved plans to triple its production to 155 million tonnes a year by June 2013 and if markets remain strong and it plans to move to 350 million tonnes four years after that.
Fortescue ambition to increase annual production capacity by 300 million tonnes in six years compares with BHP's plan to grow by 200 million tonnes to 350 million tonnes a year in eight years and Rio plan to add 100 million tonnes to 333 million tonnes in four years.
(sourced TheAustralian)
It is reported that the push to quickly ramp up iron ore production in Western Australia vast Pilbara region is very much a race between the nation three big iron ore miners Rio Tinto, BHP Billiton and Fortescue Metals Group.
The prize for faster expansion is longer access to windfall prices, which will probably fall as new supply emerges. Tonnes brought to market later will get lower prices.
Mr Nev Power CEO of Fortescue said "The sooner you can bring more volume into the market, the sooner you enjoy the high prices and high returns. He said that but every tonne that comes into the market will start to ease the supply bottleneck and therefore bring the price down."
Mr Power who took the chief executive job from Fortescue founder and major shareholder Andrew Forrest in July is continuing a strategy already in place when he joined. He said that "Our current strategy is very much about taking the opportunity of this strong demand out of China and responding to that with very rapid development and ramp-up of our projects.”
He added that "We recognize that these opportunities don't last forever and we recognize that the strong growth of China needs to be satisfied. Therefore the primary plank of our strategy has been to get in very quickly and meet that demand and to fuel that growth."
Fortescue has approved plans to triple its production to 155 million tonnes a year by June 2013 and if markets remain strong and it plans to move to 350 million tonnes four years after that.
Fortescue ambition to increase annual production capacity by 300 million tonnes in six years compares with BHP's plan to grow by 200 million tonnes to 350 million tonnes a year in eight years and Rio plan to add 100 million tonnes to 333 million tonnes in four years.
(sourced TheAustralian)
Saturday, October 1, 2011
FMG sees Sept quarter iron ore shipments over 12 million tonnes
Saturday, 01 Oct 2011
Reuters reported that Australian iron ore producer Fortescue Metals Group production for the September quarter had been strong and shipped volumes would be more than 12 million tonnes.
The average selling price for the period would be around AUD 160 per tonne subject to final adjustments, company said in a statement.
The firm also said its iron ore expansion programme is progressing on time and on budget.
(Sourced from Reuters)
Reuters reported that Australian iron ore producer Fortescue Metals Group production for the September quarter had been strong and shipped volumes would be more than 12 million tonnes.
The average selling price for the period would be around AUD 160 per tonne subject to final adjustments, company said in a statement.
The firm also said its iron ore expansion programme is progressing on time and on budget.
(Sourced from Reuters)
Thursday, August 4, 2011
Caterpillar inks MoU with FMG for Solomon iron ore development
Thursday 04 Aug, 2011 |Miningmagazine
Caterpillar and its Australian dealer, WesTrac, have signed a memorandum of understanding with Fortescue Metals Group to implement an autonomous mine haulage solution at FMG's new Solomon iron ore development in Pilbara in Western Australia. This will be the first large commercial installation of Caterpillar's autonomous trucks anywhere in the world.
The deal, which is focused on boosting productivity and performance, will comprise several elements, including the full Cat MineStar System technology suite and an initial fleet of 12 Command autonomous 793F haul trucks. These will be installed in the September and December quarters of 2012. The companies anticipate that Solomon will have a total of 45 autonomous trucks by 2015.
Mr Chris Curfman VP of Caterpillar Global Mining said that "By working closely with mining customers, we are able to tailor a solution to their specific business needs using Caterpillar's broad range of products, technology and services. This collaboration will also positively impact sustainability at Solomon mine through reduced environmental footprint and machine efficiencies."
Though still relatively new, FMG has quickly established itself as one of the world’s largest producers and traders of iron ore. The company, which was formed in 2003, owns approximately 87,000 square kilometers of Pilbara tenements.
FMG's first mine site, Cloudbreak, began production in May 2008, and Christmas Creek came on line in April 2009. Since 2006, FMG has expanded its exploration westwards. The Solomon area, which is about 70 kilometers north of Tom Price, has been chosen as the next area for development.
Consultant Coffey Mining prepared a reserve estimate for the project earlier this year, based on FMG's own resource estimate for the deposits of Kings and Firetail.
The probable reserve estimate totaled 716.3 million tonnes at an average grade of 56.3% Fe, 7.66% SiO2, 2.93% Al2O3 and 0.073% P.
Mining was forecast to support iron ore production of 60 million tonnes per annum, comprising 40 million tonnes channel iron deposit fines and 20 million tonnes Brockman fines, for a decade.
Mr Neville Power COO of FMG said that "Innovation is at the heart of Fortescue's values. It is how we started this business through different exploration and mining practices, and it will be critical in how we implement our extensive growth aspirations. One of the key growth challenges we face is around availability of people and the need to best utilize this valuable resource. As such, it is incumbent upon us to look at new ways of doing things. The expected roll out is more than just a trial. It is the unique capabilities that the three parties bring to this agreement that will deliver the world’s leading autonomous mining solution at Solomon."
Caterpillar and WesTrac will work together to provide product and technology implementation, consulting and management services to Solomon mine, as well as operating the complete autonomous system once it is up and running. WesTrac will also be responsible for supporting the Caterpillar mining fleet at Solomon with machine and technology technicians and support personnel.
Mr Jim Walker CEO of WesTrac Group said that "By marrying our Cat product expertise with these ‘building block’ technologies, we are well positioned with Caterpillar to provide Solomon mine with a turnkey autonomous mining solution."
Caterpillar and its Australian dealer, WesTrac, have signed a memorandum of understanding with Fortescue Metals Group to implement an autonomous mine haulage solution at FMG's new Solomon iron ore development in Pilbara in Western Australia. This will be the first large commercial installation of Caterpillar's autonomous trucks anywhere in the world.
The deal, which is focused on boosting productivity and performance, will comprise several elements, including the full Cat MineStar System technology suite and an initial fleet of 12 Command autonomous 793F haul trucks. These will be installed in the September and December quarters of 2012. The companies anticipate that Solomon will have a total of 45 autonomous trucks by 2015.
Mr Chris Curfman VP of Caterpillar Global Mining said that "By working closely with mining customers, we are able to tailor a solution to their specific business needs using Caterpillar's broad range of products, technology and services. This collaboration will also positively impact sustainability at Solomon mine through reduced environmental footprint and machine efficiencies."
Though still relatively new, FMG has quickly established itself as one of the world’s largest producers and traders of iron ore. The company, which was formed in 2003, owns approximately 87,000 square kilometers of Pilbara tenements.
FMG's first mine site, Cloudbreak, began production in May 2008, and Christmas Creek came on line in April 2009. Since 2006, FMG has expanded its exploration westwards. The Solomon area, which is about 70 kilometers north of Tom Price, has been chosen as the next area for development.
Consultant Coffey Mining prepared a reserve estimate for the project earlier this year, based on FMG's own resource estimate for the deposits of Kings and Firetail.
The probable reserve estimate totaled 716.3 million tonnes at an average grade of 56.3% Fe, 7.66% SiO2, 2.93% Al2O3 and 0.073% P.
Mining was forecast to support iron ore production of 60 million tonnes per annum, comprising 40 million tonnes channel iron deposit fines and 20 million tonnes Brockman fines, for a decade.
Mr Neville Power COO of FMG said that "Innovation is at the heart of Fortescue's values. It is how we started this business through different exploration and mining practices, and it will be critical in how we implement our extensive growth aspirations. One of the key growth challenges we face is around availability of people and the need to best utilize this valuable resource. As such, it is incumbent upon us to look at new ways of doing things. The expected roll out is more than just a trial. It is the unique capabilities that the three parties bring to this agreement that will deliver the world’s leading autonomous mining solution at Solomon."
Caterpillar and WesTrac will work together to provide product and technology implementation, consulting and management services to Solomon mine, as well as operating the complete autonomous system once it is up and running. WesTrac will also be responsible for supporting the Caterpillar mining fleet at Solomon with machine and technology technicians and support personnel.
Mr Jim Walker CEO of WesTrac Group said that "By marrying our Cat product expertise with these ‘building block’ technologies, we are well positioned with Caterpillar to provide Solomon mine with a turnkey autonomous mining solution."
Thursday, January 27, 2011
FMG orders for 260 iron ore rail cars from China
Thursday, 27 Jan 2011
The West Australian reported that Fortescue Metals Group has struck a deal to buy 260 numbers of 40 tonne axel load iron ore rail cars from China's CNR Corp as part of Pilbara expansion ambitions.
The contract signing coincided with a visit by senior FMG executives, thought to include development director Mr Peter Meurs, to China to secure equipment needed for the Pilbara expansion.
Chinese reports claimed the ore cars were the biggest freight wagons in the world, based on their loading capacity.
Fortescue announced the go ahead for its USD 8.4 billion Pilbara expansion two months ago. The expansion will increase Fortescue's iron ore production from 55 million tonnes to 155 million tonnes per annum within three years by increasing capacity at the Chichester Range mines and building a new one at Solomon, in the central Pilbara.
Fortescue has long claimed that its 280 kilometer railway from the Chichester mines to Port Hedland is the world's heaviest line, with its ability to handle 40 tonne axle load ore cars.
FMG's rail fleet already has 15 GE Dash 9 diesel locomotives and 976 freight cars, including fuel and ballast wagons.
CNR has sold 5000 rail cars in to Australia since 1999. Customers include BHP Billiton and Rio Tinto. (Sourced from thewest.com.au)
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