Fortescue signs EPCM contract with WorleyParsons

Fortescue Metals Group Ltd announced it has signed an EPCM contract with WorleyParsons Ltd covering engineering, procurement and construction management of Fortescue's Pilbara iron ore and infrastructure project.

At market close, shares in FMG were down 45 cents to $7.90.

Initial earthworks commenced in February 2006. Other key contracts such as dredging and procurement of long lead time items such as product handling equipment have been negotiated.

Fortescue established an initial project credit line of US$200 million in March 2006 to facilitate implementation.

The company is working with the international investment bank Citigroup to complete the permanent project finance package.