Despite weather-related delays earlier this year,Australia’s Fortescue Metals Group is confident of meeting a May 2008 deadline to start exporting iron ore from its multibillion- dollar Pilbara venture.
“We’re looking strongly at making that (May 2008 deadline),” Fortescue CEO
Andrew Forrest told the AMEC mining congress in Perth.
Heavy flooding in March from Cyclone George caused a six-week delay in development of the mine.
Perth-based Fortescue aims to produce 45 million metric tons of iron ore a year, which would make it a major competitor to established Australian iron ore miners, BHP Billiton and Rio Tinto.
Rising Chinese demand of the steelmaking ingredient has spurred BHP and Rio Tinto to expand production as well. The price of contract iron ore has surged, and analysts are tipping further increases next year. Citigroup, for instance, is forecasting a 20% increase in price when annual contracts are renegotiated early in 2008.
When asked for comment on the broker’s prediction, Fortescue’s Forrest said, “I can definitely say it is going up.”
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