Fortescue CEO Nev Power
Photo by: Bloomberg
PERTH (miningweekly.com) – Iron-ore major Fortescue Metals on Monday told shareholders that it would move to a full owner-operator model at its Christmas Creek operations, in an effort to cut back on costs.
CEO Nev Power noted that the change would be implemented at the end of September this year, when the current mining services contract with Downer EDI ran out.
“The Downer team have been involved with mining at Christmas Creek since the outset and have played an important role in Fortescue’s development of our world-class facilities at Chichester hub,” Power said.
“Adoption of an owner-operator model will further reduce Fortescue’s costs through ongoing improvement of the efficiency and productivity of our Christmas Creek mining operations.”
Power noted that Fortescue’s ability to generate strong earnings and cash flow would enable the company to further improve its balance sheet and return to shareholders.
The Chichester hub, which contains the Cloudbreak and Christmas Creek operations, produces 90-million tonnes a year of iron-ore.