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
The project is owned through an unincorporated joint venture between Fortescue Metals Group 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. 

The project has 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-tonnes-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 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
Total Stage 2 capital costs are estimated at $2.6-billion. The JV partners are each responsible for their equity share of total capital expenditure for Stage 2.

Planned Start/End Date
Delivery of first ore is expected in the first half of 2022, with ramp-up to full production within 12 months.

Latest Developments
The project is well progressed and ready for detailed design and execution, with the majority of key approvals already in place.

Five binding offtake agreements have also been concluded for 5.3-million tonnes a year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

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