The Pilbara’s Iron Bridge project is set to ramp up after Fortescue Metals finalised a $1.15 billion dollar deal with Taiwanese steel manufacturer, Formosa Plastics.
The deal will see Formosa secure a 31 per cent share of Iron Bridge for $123 million. Formosa will also shell out $576million (AUS) to fund construction of the first stage and has agreed to buy 3 million tonne of iron ore per year from Fortescue if the project proceeds to stage 2.
The company has also agreed to stump up $500 million to access Fortescue’s port and rail infrastructure in the Pilbara.
Production is expected to begin in 2015 after a 12 month construction phase.
Located approximately 100 km south of Port Hedland in WA, the project covers deposits estimated to yield 5.2 billion tonnes.
Iron Bridge was scheduled to float on the Hong Kong Stock Exchange late last year, however nose-diving iron ore prices forced Fortescue to temporarily shelve the project.
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