Fortescue halves capex for 2015
Iron-ore major Fortescue Metals has halved its capital expenditure expectations for the 2015 financial year from $1.3-billion to $650-million.
The miner said last month that the reduction in planned spend for 2015 was consistent with Fortescue’s ongoing focus on delivering operational efficiencies and reducing costs in order to maximise shareholder value.
“In addition to our focus on safety, efficiency and lowering costs, our objective is to produce superior shareholder returns. In this current environment, it is prudent to defer investing additional capital that increases supply into the market,” CEO Nev Power said.
The $650-million capital saving would be obtained through the re-engineering of dewatering requirements, a reduction in exploration, the deferral of the detrital processing plant at the Solomon hub, in Western Australia, as well as the reduction and deferral of operational capital expenditures.
Further, Fortescue would implement efficiencies in the construction of its Anderson Point Berth 5.
The company said that, given the advanced stage of the development of this berth, work would continue to complete the project, which remains on schedule for commissioning in March.
The company would also continue with orders for very large ore carrier ships, but would investigate alternative ownership and funding options for these vessels.
“We will maximise output from our world-class mining and infrastructure assets and remain focused on factors within our control to ensure the efficiency of operations and cash discipline to continue the programme of early, voluntary debt repayment,” Power added.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established on 1 March, 2000, by Barries Barnard, Advanced Fire Suppression Technologies (AFST) and the Advanced Group stands as Sub-Saharan...
VISIT SHOWROOM
As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
