13/12/2012 - 14:27

Fortescue upgrades resource at Iron Bridge

13/12/2012 - 14:27

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Fortescue upgrades resource at Iron Bridge

Fortescue Metals Group says its Iron Bridge magnetite deposit near Port Hedland could be the next non-core asset it sells off, after it announced a significant increase in resources at the project.

FMG announced today an increase of 2 billion tonnes, taking the total resource for the project to 5.2 billion tonnes at 30.4 per cent ferrous.

The company said it remained in discussions with interested parties regarding the sale of a strategic stake in the project, as well as equity development funding.

“Fortescue’s primary focus is on its direct ship hematite business across its Pilbara operations; however the company believes there is potential to deliver shareholder value through the alignment of its magnetite interests with strategic partners to assist in the development and financing of these projects,” FMG said in a statement.

A feasibility study for the Iron Bridge mine is due to be released early next year.

At close of trade today, FMG shares  were down 0.7 per cent, trading at $4.25.

The iron ore miner sold off a 25 per cent stake in the Nullagine iron ore joint venture with BC Iron earlier this week, for $190 million.

FMG is also considering a re-start of its Kings mine, at its Solomon Hub in the Pilbara.

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