Name of the Project
Iron Bridge magnetite project – Stage 2.

Location
The project is located 145 km south of Port Hedland, in Pilbara, Western Australia.

Project Owner/s
An unincorporated joint venture (JV) between Fortescue Metals Group (FMG) subsidiary FMG Iron Bridge, or FMG IB (69%), and Formosa Steel (31%).

FMG will manage and operate the project with full marketing rights.

Project Description
The project has a mineral resource of 5.45-billion tonnes, including an ore reserve of 716-million tonnes, and a mine life of more than 20 years.

This Stage 2 development follows the $500-million investment in the successful Stage 1 construction of large-scale pilot and demonstration plants, which have validated key equipment and magnetite production processes for the full-scale Stage 2 ore-processing facility.

Stage 2 development includes:

• a 22-million-wet-metric-tonne-a-year ore processing facility (once at full operational capacity);
• an airstrip and expanded village;
• a 195 km canning basin water pipeline;
• a 135 km concentrate pipeline to FMG’s Herb Elliot port facility, in Port Hedland, and a return process water pipeline; and
• port handling facilities, including concentrate dewatering, covered storage and reclaiming/conveying, to existing port outload circuits.

The project aims to produce 22-million wet metric tonnes a year once full operational capacity is achieved. Iron Bridge will deliver a premium product with an iron content of 67%.

Potential Job Creation
About 3 000 people will be employed during construction and 900 full-time positions will be created once operations start.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The capital estimates for the project have been revised to between $3.6-billion and $3.8-billion, from between $3.3-billion and $3.5-billion, subject to JV approvals.

Planned Start/End Date
First ore is scheduled for the March quarter of 2023.

Latest Developments
FMG has said that it is confident that it can deliver its Iron Bridge magnetite mine within the new budget and timeframe announced earlier this year.

The miner earlier this year flagged another cost blow-out and production start delay at Iron Bridge.

FMG outgoing CEO Elizabeth Gaines speaking to media at the Diggers and Dealers conference on August 2, reaffirmed the cost guidance for Iron Bridge, noting that the project delivery had been derisked with the arrival of all ships containing modules for the operation at Port Hedland.

Key Contracts, Suppliers and Consultants
NRW Holdings (bulk earthworks); and SIMPEC (wet processing plant construction).

Contact Details for Project Information
FMG, tel +61 8 6218 8888.
Formosa Steel, tel +886 2 2712 221.