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
The capital estimates for the project have been revised to between $3.6-billion and $3.8-billion, from between $3.3-billion and $3.5-billion, subject to joint venture approvals.

Planned Start/End Date
First production is scheduled for 2023.

Latest Developments
Fortescue Metals has flagged another cost blowout and production start delay at its Iron Bridge magnetite project.

Covid-19-related labour constraints, including isolation and absenteeism, together with a tight labour market, have contributed to workforce levels being significantly below the workforce plan for the March quarter. Other factors include ongoing supply chain issues, higher installation and construction costs, as well as an escalation in logistics and shipping costs, which, in turn, have been further exacerbated by the recent lockdowns in China.

Fortescue continues to proactively manage Covid-19 and prioritise critical-path work to minimise impacts on the schedule.

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

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