September 08, 2008

FMG completes 82% of Pilbara Iron ore project

It is reported that construction was 82% complete at the end of December 2007 on Fortescue Metals Group’s AUD 2.7 billion iron ore project in Australia.

FMG has dispelled rumors it will miss its first shipment of iron ore in mid May, claiming the project is still on schedule. First shipment of ore from the mine remains on schedule for May.

It did however concede the timeframe for the completion of the rail link was pushing critical because of minor delays. By the end of December, Fortescue had laid 97 kilometer of the 260 kilometer link between its vast Pilbara iron ore deposits and its Port Hedland berth, which is scheduled to receive ore on March 14th 2008. But construction delays on the rail link will mean the ore cannot be loaded till April, gobbling up significant breathing space.

FMG said "The challenge is to ensure sufficient capped rail formation ahead of the SUM track laying machinery to ensure it operates all day every day.”