Fortescue Metals Group (FMG) announced that its subsidiary FMG Magnetite and its joint venture (JV) partner Formosa Steel IB have approved the development of Stage 2 of the Iron Bridge Magnetite Project in Australia with an investment of $2.6 billion.

The Iron Bridge Magnetite Project, which is located 145 km south of Port Hedland in the Pilbara region of Western Australia, is expected to yield 22 million tons a year of 67% iron magnetite concentrate by mid-2022 after completion of the Stage 2 development.

The iron magnetite project is owned by FMG Iron Bridge (69%) and Formosa (31%). FMG Magnetite is a subsidiary of FMG Iron Bridge, a Hong Kong registered company, which is owned by Fortescue Metals Group (88%) and a subsidiary of Baosteel Resources International Company (Baosteel), which owns the remaining 12% stake.

The second stage development of the Iron Bridge Magnetite Project comes after a $500 million investment in the stage 1 construction of large scale pilot and demonstration plants at the project which Fortescue Metals Group says have validated key equipment and magnetite production processes designed for the full-scale Stage 2 ore processing facility (OPF).

The Stage 2 development of the iron magnetite project is expected to generate close to 3,000 jobs for its construction followed by 900 full-time jobs for its operations with first ore expected to be drawn in the first half of 2022.

According to Fortescue Metals Group, the stage 2 development of the Iron Bridge Magnetite Project will involve construction of a 22 wmpta ore processing facility, an airstrip and expanded village, a 195 km long Canning Basin water pipeline, a 135 km long concentrate pipeline to the company’s Herb Elliot port facility along with certain port handling facilities.

Commenting on the Stage 2 development of the Iron Bridge Magnetite Project, Elizabeth Gaines – CEO of Fortescue Metals Group, said: “The Iron Bridge Project holds Australia’s largest JORC compliant magnetite resource supporting a long mine life. The Project is well progressed and ready for detailed design and execution with the majority of key approvals already in place.

“The innovative design, including the use of a dry crushing and grinding circuit, will deliver an industry-leading energy efficient operation with globally competitive capital intensity and operating costs.

“The Project will underpin the future significant contribution of magnetite processing to the Australian economy through construction and jobs, together with tax and royalty payments.”

  Australia, Baosteel, Elizabeth Gaines, Formosa Steel IB, Fortescue Metals Group, Iron Bridge Magnetite Project, Western Australia