Tag Archives: Andrew Forrest

Fortescue breaks ground at $1.275 billion Eliwana iron ore development

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Fortescue Metals Group says it has officially broken ground on the Eliwana iron ore mine and rail project in the Pilbara of Western Australia.

FMG Founder and Chairman, Andrew Forrest, was today joined by Mark McGowan, Premier of Western Australia, FMG CEO, Elizabeth Gaines, and the company’s core leadership team, for the official sod turning.

The $1.275 billion project includes the construction of 143 km of rail, a new 30 Mt/y dry ore processing facility (OPF) and infrastructure. First ore on train is expected in December 2020, the company says.

FMG says contracts to the value of A$330 million ($232 million) to date have been awarded to more than 250 Australian business entities as part of the Eliwana development, of which 80% are Western Australia-owned businesses. As further approvals are progressed, it is expected over A$500 million in additional contracts will be awarded by the end of 2019, FMG said.

Contract recipients include BGC Contracting for bulk earthworks and roads, NRW Holdings, also for bulk earthworks, and SIMPEC for electrical, communications and dry fire systems testing.

“Eliwana underpins the sustainable production of West Pilbara Fines and provides the flexibility for Fortescue to deliver products at greater than 60% Fe grade,” FMG said. “The development will utilise the latest technology, autonomous trucks and design efficiency, further cementing Fortescue’s world leading use of innovation across its mining operations.”

Forrest said: “This is a proud day for Fortescue as we celebrate the largest project since the Kings Valley mine in 2014.

“Since Fortescue was founded 16 years ago, we have held community and family at our core and continued to deliver on our commitment to be the safest, lowest cost company. Eliwana is the next great step into the Western Hub, enhancing our profitability and extending our mine life.”

The project will generate up to 1,900 jobs during construction and 500 full-time site positions once operational, according to Forrest.

Gaines said: “The Eliwana project will build on Fortescue’s unparalleled track record and capability in safely developing and operating major iron ore projects in the Pilbara. Eliwana is core to the next phase of development in Fortescue’s world class, innovative operations. The project will see us maintain our low-cost status, provide us with greater flexibility to deliver on our integrated operations and marketing strategy and, when combined with the Iron Bridge Magnetite development, it will increase Fortescue’s average product grade and provide the ability to deliver the majority of our products at greater than 60% Fe, consistent with our long term goal.”

Fortescue completes tug fleet and towage infrastructure at Herb Elliott Port

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Fortescue Metals Group has celebrated the completion of its fleet of tugs and towage infrastructure at the company’s Herb Elliott Port, in Port Hedland, Western Australia.

Founder and Chairman, Andrew Forrest (pictured on the left), together with Chief Executive Officer, Elizabeth Gaines (pictured on the right), and the core leadership team, were joined by local politicians and members of the Port Hedland community to celebrate the milestone ahead of tug operations commencing in July.

Fortescue has procured and constructed six tugs and leased a further three tugs, including six Advanced Rotor Tugs 85-32W, which were constructed by Damen Shipyards at the Song Cam and Damen Song Cam shipyards, in Vietnam, it said. The tugs will be based at the new nine berth tug and harbour facility, located in the vicinity of Fortescue’s berths one to three at Anderson Point.

Forrest said: “As Australia’s economic and industrial gateway to Asia, the port of Port Hedland is the largest bulk export port in the world. It is an economic powerhouse of our country generating countless jobs and businesses directly across the nation and supporting the standard of living of us all.

“Since Fortescue was founded, we have set ourselves the toughest stretch targets we could. We aimed to develop the world’s most advanced vertically integrated bulk operations infrastructure, and to seamlessly link this with our core exploration, metallurgical and mining operations.

“Our aim was to develop an integrated world leading system to deliver critical ores that would build the economies of nations. The strategic decisions made by the Board to build our fleet of ore carriers and Fortescue owned and operated towage capability mark the critical completion of this part of Fortescue’s journey.”

Gaines added: “Fortescue operates the most efficient bulk port operation in Australia and the towage fleet represents the final element in our supply chain, with our innovative new tug fleet able to provide safe and reliable towage services and additional towage capacity for all Port Hedland users. The tug fleet and new facilities will maximise the efficiencies of our operation and provide long-term sustainable towage services crucial to meeting the demands of our customers.

“I would like to thank the entire Fortescue team for their work to bring us to the point of operational readiness, as well as the Pilbara Ports Authority, Damen Song Cam Shipyard, who constructed the vessels, and KOTUG and Westug Pty Ltd, who will manage the towage operations.”