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 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
A review of the project has upwardly revised the capital cost of the project from $2.6-billion to $3-billion.

Planned Start/End Date
First production is scheduled for 2022.

Latest Developments
Iron-ore miner Fortescue Metals has postponed first production from its Iron Bridge magnetite mine.

First production is now expected in the second half of 2022, as opposed to the first half.

A technical and commercial assessment of the project is under way, and is scheduled to take about 12 weeks to complete.

The assessment will focus on enhancing the use of Fortescue’s port and rail infrastructure for the project, assessing the magnetite concentrate transportation solution and return water pipelines to Port Hedland, contractor strategy and selection, and the logistics infrastructure to maintain the scheduled delivery of the large modular components through Port Hedland.

Key Contracts, Suppliers and Consultants
NRW Holdings (bulk earthworks).

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