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.





