FORTESCUE METALS GROUP LTD - ASX: FMG

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Description

Fortescue is the New Force in Iron Ore and has joined the world's leading producers of iron ore. Since the Company was formed in 2003, its extraordinary growth has been unparalleled. Listed in the S&P/ASX 50 share index, Fortescue has firmly established itself as one of the world's largest producers and sea-borne traders of iron ore.

From Construction to Production

Construction of Fortescue's port, rail and mine project commenced in February 2006 with the turning of the first sod at the Company's port site at Anderson Point in Port Hedland. Just two years later in 2008, the open-access rail infrastructure was complete and operations were underway at the Fortescue Herb Elliott Port and at the Company's first minesite, Cloudbreak.

Shipping started on 15 May of 2008 and Project Completion was achieved within months. On the 18th of July, Fortescue's fifth anniversary, the Company successfully mined, railed and shipped at a rate of 24Mtpa for a one month period. This accomplishment occurred in line with the detailed business plan for its Pilbara Project.

In the first full year of operations, Fortescue mined, railed and shipped more than 27 million tonnes of iron ore to customers in China.

Many milestones have been achieved since then including the establishment of Fortescue's second minesite at Christmas Creek to create the Chichester Hub and the development of plans for the Solomon Hub of tenements to the west of the company's original mines.

Finance

F

ortescue's project was founded on the raising of A$3.7 billion capital, including A$1 billion equity, during two finance roadshows in August 2006 and July 2007. The August 2006 raising was the largest single high-yield Asia-Pacific transaction, the largest high-yield bond project financing ever, one of the largest corporate bonds out of Australia and one of the largest global bond issues in the sector. Since then Fortescue has grown to become a S&P/ASX 50 company.

Over 49,000 Australians have become shareholders in the proudly Australian founded and managed company.

Reserves and Resources

A substantial increase in Fortescue's Resource Inventory to 10.03 billion tonnes in March 2011, including 1.6 billion tonnes of Reserves, positioned the company as one of the world's major resource houses.

This massive Resource Inventory was achieved in record time and was delineated from approximately 10 per cent of Fortescue's 87,000 square kilometres of Pilbara tenements.

In July 2009, Fortescue announced a 1.23 billion tonne (Bt) Inferred Resource Estimate for its Glacier Valley tenement area. Glacier Valley is held by Fortescue but is subject to a joint venture agreement with an Australian subsidiary of China's Baosteel Group Corporation.

In February 2011, Fortescue announced a new discovery of over 1 billion tonnes of high grade Brockman iron formation. Named the Nyidinghu project, it is 35 kilometres south of our Cloudbreak operation on the edge of the Hamersley Ranges and is open to the north where intersections of over 100 metres were encountered. Early strip ratio calculations suggest it can be mined on a one to one basis.

Mine For

iron ore, gold, copper, coal

Location of operation(s)

Western Australia

Address

Level 2 , 87 Adelaide Terrace
EAST PERTH, WA, AUSTRALIA

Phone

(08) 6218 8888

Email

Website

http://www.fmgl.com.au

Last Updated

8/4/2011