Fortescue may hire contractor for Iron Bridge mine – The Australian

Fortescue Metals Group Ltd. is considering handing over mining at its Iron Bridge magnetite mine in Western Australia to a contractor, to cut capital costs for the up to US$3.5 billion operation, The Australian reported Jan. 10.

The iron ore mining giant has sought pricing from major mining services companies to conduct mining at Iron Bridge, with Downer EDI Ltd. reportedly the frontrunner to secure the contract. By hiring a mining contractor, the company is likely to save between A$250 million and A$400 million in costs of purchasing fleet trucks for the operation, the report said.

Fortescue is conducting early works at Iron Bridge using the company's own fleet and staff, contrary to the company's strategy of allowing a contractor to conduct initial work before taking over when production hits consistent levels.

FMG Iron Bridge Ltd., an 88-12 joint venture between Fortescue and Baosteel Resources (International) Co. Ltd., owns 69% of the Iron Bridge project.

In May 2021, capital costs for Iron Bridge was raised to between US$3.3 billion and US$3.5 billion, from US$2.6 billion previously estimated, following a technical and commercial assessment of the proposed mine.