Posts Tagged ‘Fortescue Metals’

  • ASX Company News: Fortescue To Spend $8.4 billion To Expand Iron Ore Capacity

    Monday, November 22nd, 2010

    Fortescue Metals Group Ltd (FMG) has approved plans to expand its production from 55 million tonnes per annum (Mtpa) to 155Mtpa.  The approval sets the platform for a major US$8.4bn works and procurement expansion program to commence at Fortescue’s Chichester and Solomon Hubs. “This decision will enable Fortescue to leverage its existing infrastructure and its massive land holding across the Pilbara to exponentially increase product sales within key markets of Asia, Europe and Australia,” Fortescue’s CEO Mr Andrew Forrest said.

    “After years of planning for the next phase of development, the depth of management experience and breadth of construction and operational expertise will enable Fortescue to rapidly achieve its growth ambitions within a sector that is underpinned by an extraordinary demand profile,” Mr Forrest added.

    Fortescue’s Board approved the expansion plans after assessing the recently completed Solomon Stage 1 feasibility study and a full review of the detailed planning for the Chichester Hub expansion. The decision to proceed was enabled by the recent highly successful refinancing of Fortescue’s debt facilities.

    The total capital expenditure budget, for construction of the infrastructure platform together with the procurement of the materials handling equipment including rail consists, is US$8.4bn. The strategy for contractor versus owner mining has yet to be finalised and therefore the cost of any mobile mining equipment, should it be acquired by Fortescue, will be in addition to this amount.

    www.fmgl.com.au

    http://www.traderdealer.com.au/Fundamentals/fmg

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    Downer EDI Preferred Tenderer For $3 billion Fortescue Project

    Saturday, May 15th, 2010

    Downer EDI Limited (DOW) today announced it has been awarded preferred tenderer status on a six-year contract with Fortescue Metals Group Limited, for the provision of mining services at its Christmas Creek operation in the east Pilbara Region of Western Australia.

    Contract negotiations for the project, valued at approximately $3 billion, are still to be completed but are expected to be finalised in June 2010, with project commencement scheduled for July 2010.

    The contracted services will include the establishment of infrastructure, drill and blast, load and haul overburden, and an expected BCM of 343 million over a six-year period.

    www.downeredi.com

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    Decmil Group Secures $82 million Housing Contract With Fortescue Metals

    Tuesday, April 20th, 2010

    Decmil Group Limited (DCG) today announced its wholly-owned subsidiary, Decmil Australia Ltd, has been awarded an A$82.4 million contract by Fortescue Metals Group Ltd to design and construct an 800-man accommodation village at Christmas Creek in Western Australia’s Pilbara region. Work on the project will start immediately and is expected to be completed in February 2011.

    Decmil Group CEO Scott Criddle said “this latest contract further cements Decmil’s position as the leading provider of accommodation villages to the WA resources and oil & gas industry. The Company’s experience and reputation for designing and constructing large-scale accommodation villages has strengthened in the past two years and remains a core business focus for the Group going forward,” Mr Criddle said. The Christmas Creek village will accommodate the permanent workforce for FMG’s mining operations and has been designed to provide ‘a superior level of comfort and service in accommodation villages in Western Australia.’  Mr Criddle said Decmil has seen a step-change in resource companies’ approach to the design of remote accommodation villages in recent years. “Decmil Australia is now designing and constructing villages that resemble a resort, rather than a traditional  workers camp with rows of accommodation,” he said. “It is clearly evident that resources companies are significantly increasing the design and standard of accommodation facilities offered to employees in line with the strong competition for labour.”

    The Christmas Creek village has been specifically designed to enable a cost effective and practical expansion to accommodate 1600 people. The design clusters accommodation units in groups around a circular landscaped meeting and relaxing zone rather than in a grid. The village can be built in two phases with two 800-person camps centered around a shared services area.

    Decmil Group Limited (DCG) is a multi-disciplined design, civil engineering and construction company focussed on delivering integrated solutions to blue-chip clients in the oil and gas, resources and infrastructure sectors in Western Australia through a group of wholly-owned subsidiaries. Previously known as Paladio Group Limited, the company changed its name to Decmil Group Limited in June 2009 to leverage value from its major subsidiary Decmil Australia’s 30-year history, recognisable brand and established reputation with blue-chip clients. Decmil Australia Pty Ltd is a leading provider of engineering construction, maintenance and industrial services to Australia’s resources, energy and infrastructure sectors. The company offers a wide range of construction and maintenance services, specialising in non-process infrastructure on remote sites. Decmil has been contracted to design, build and commission temporary and permanent accommodation villages, administration buildings, maintenance facilities and storage facilities for some of the world’s leading resource companies.

    www.decmilgroup.com.au

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    Fortescue increases production, plans $360m expansion

    Monday, October 12th, 2009

    Fortescue Metals‘ Quarterly Report shows a better than expected production result, and reveals the board’s approval of a A$360 million capital expenditure project.

    The production results beat expectations by 9%, and the US$704 million cash in bank was up US$50 million from the end of June.

    Meanwhile, the internally funded capital expenditure project will fast track the expansion of the Christmas Creek mine, and includes an extension to the rail line from the Cloudbreak mine, the construction of an ore processing facility and other associated infrastructure. The development is scheduled for completion within 13 months from the November 2009 commencement.

    The Fortescue share price was up on early trading this morning.

    Fortescue Metals Group
    ASX Code: FMG
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    BHP tipped to offer for United Minerals

    Friday, October 9th, 2009

    Junior iron ore explorer United Minerals has requested a trading halt, pending an announcement widely expected to be a takeover offer.

    Among the candidates tipped to be making the offer, BHP Billiton is appearing as a frontrunner, according to The Australian. United Minerals’ proximity to BHP’s Pilbara operations, as well as rumours BHP had already explored a form of agreement are fuelling speculation.

    Rio Tinto and Fortescue Metals are also being cited as potential buyers.

    United Minerals
    ASX Code: UMC
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    News roundup for today

    Thursday, February 26th, 2009

    Making the news today…

    • The OZ Minerals share price dropped 15.4% yesterday, with investors fearful that OZ s banks won t come to the party by tomorrow s deadline. There were plenty of buyers as well though, with over 125 million shares being traded.
    • Economic recovery in the US could happen as early as 2010. With a rare spark of optimism, US Federal Reserve Chairman Ben Bernanke told Congress that recovery was possible if policymakers were successful in restoring financial stability.
    • Sol Trujillo will be departing Telstra in June, after four years of aggressive and often controversial changes as CEO. Let s see if the change of leadership brings about a reconciliation between the telco and the federal government.
    • Fortescue Metals has scrapped plans for a $500 million capital raising, as Chinese Hunan Valin is willing to pay a much higher price for its shares than Australian institutional investors.

    Stocks for your watchlist:
    OZ Minerals: OZL.AX (ASX)
    Fortescue Metals Group: FMG.AX (ASX)
    Telstra: TLS.AX (ASX)

    Further Information:
    The Age
    The Australian (1)
    The Australian (2)

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    What s the latest with the miners?

    Tuesday, February 24th, 2009

    Rio Chinalco

    • As Rio s board of directors discusses the Chinalco alliance, only one Australian voice remains. Rod Eddington has chosen to stand aside from voting on this issue, due to a perceived conflict of interest.
    • Shares were sold off yesterday, following concern that shareholder backlash could lead to a shakeup of board and management positions, according to a report in the Herald Sun.
    • Rio is thought to be working on an arrangement to allow institutional investors access to bonds on similar terms to those offered to Chinalco, in an effort to appease the dissenting shareholders.

    Fortescue Metals

    • Trading has been halted while the company seeks to raise $500 million to fund the expansion of operations at its Pilbara iron ore mine. Investment is expected to come from institutional investors and Chinese steel group Hunan Valin.

    OZ Minerals

    • OZ has met the first of two conditions required for Minmetals to proceed with its takeover bid. The second condition, an agreement by OZ s banks to a debt facility extension, is expected to be met by Friday.
    • Unconfirmed rumours suggest OZ is planning to sell its Martabe gold project in Indonesia, and that BHP Billiton may bid for the Prominent Hill mine.

    Further information:

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    Will Fortescue be the next miner to go offshore?

    Wednesday, February 18th, 2009

    Fortescue Metals looks like being the next Australian miner to be picked up by overseas investors.

    According to the HeraldSun, the American miner Anglo American and China Investment Corp are in talks with Fortescue Metals Group, and both were seen visiting Fortescue properties last week.

    This is the latest of a string of deals which has also seen top Australian miners Rio Tinto and OZ Minerals looking to sell substantial assets to foreign buyers.

    This deal would further add to Treasure Wayne Swan s headache regarding foreign ownership legislation, which he has signalled is soon likely to be tightened.

    Rumours of a takeover have bubbled up several times in recent months, causing spikes in the share price and requiring Fortescue to respond to ASX inquiries. Fortescue has not commented on this latest speculation.

    Stocks for your watchlist:

    • Fortescue Metals Group: FMG.AX (ASX)
    • Anglo American PLC: AAL.L (London Stock Exchange); AAUK.O (NASDAQ)
    • BHP Billiton: BHP.AX (ASX); BLT.L (London Stock Exchange); BHP.N (New York Stock Exchange)

    Further information:

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