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 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, 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-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 between $3.3-billion and $3.5-billion, subject to joint venture approvals.

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

Latest Developments
Industrial services company WestStar Industrial’s engineering contractor business SIMPEC has been awarded a A$145-million contract to construct the wet processing plant at the Iron Bridge magnetite project.

The wet processing plant will be central to the production of 22-million tonnes a year of high-grade magnetite concentrate.

SIMPEC will supply vertical construction services for the works, with an anticipated workforce of more than 500.

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

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