According to Mr Nev Power CEO of Fortescue, the company one of the world largest iron ore producers has attracted interest from a number of potential partners for its non-core magnetite ore operations in Western Australia, but may still list the operations in Asia.

The Perth-based company had a day earlier significantly raised the estimated resource of magnetite at its North Star deposit and confirmed it was considering taking on a strategic partner to help it develop the project. Mr Power said “We have open options. We have a fantastic magnetite body there (but) we are focused on our hematite business.”

He said Fortescue is considering its options, but remains open to whether it would seek a financial investor to help fund development, or a strategic partner. He said the company would still consider a listing for the magnetite assets. Fortescue has lifted the total resource estimated for North Star by 880 million tonnes to 2.12 billion tonnes which it said ranks it as one of the largest magnetite deposits in Australia.

Mr Power said interest in the assets has been received from parties in China, as well as from India and the Middle East. Fortescue is investing USD 8.4 billion to expand its hematite ore operations in the remote Pilbara region, and plans to ramp up output to 155 million tonnes a year by mid-2013 from an anticipated annualised run rate of 55 million tonnes in the current quarter. Australia iron ore industry has been based on mining and exporting high grade hematite ores, although steel mills can supplement supplies with what is generally lower iron-content magnetite.

Fortescue has said it expects to complete a feasibility study on North Star by June. The deposit is located 100 kilometres south of Fortescue Port Hedland operation in Western Australia and within 25 kilometres of the existing rail line.

(Sourced from www.theaustralian.com.au)