Financial crisis hits Ferrowest project

Financing arrangements for Ferrowest's Yalgoo iron ore project have been disrupted by the financial crisis as the miner's foreign partners renew their commitment to off-take agreements.

In a statement today, Ferrowest said its unnamed foreign partners were working to secure the funding as soon as possible.

The update follows an announcement made nearly a fortnight ago when the partners requested for an extension to complete the off-take and investment agreements.

Today Ferrowest said the documentation for the agreements have been finalised and is ready for execution subject to successful financing by the foreign parties.

"The Board of Ferrowest will meet early next year to further review the position at that time and consider the options before the company," Ferrowest said.

The company is aiming to start construction of Yalgoo in the third quarter of 2010 with commissioning to start in early 2012.

Initial production rate has been pegged at 1 million tonnes per annum.

Shares in Ferrowest were unchanged at 6.1 cents at 12:51 AEDT.