Fortescue Metals Group to develop $1.69bn Eliwana iron ore project in WA

Monica Gameng   |   May 27, 2018

Fortescue Metals Group’s (FMG) board has given the green light to the development of the Eliwana iron ore mine and rail project in Western Australia’s Pilbara region. The project is expected to be valued at approximately $1.69 billion (US$1.275 billion).

The project will involve the construction of a 143-kilometre rail as well as a new 30 million tonne per annum (Mtpa) dry ore processing facility and infrastructure.

Eliwana is expected to support FMG’s premium 60 per cent iron grade product - also known as Fortescue Premium - which is set to be introduced in the second half of 2019 financial year.

The Eliwana iron ore project is expected to create up to 1,900 jobs during its construction and approximately 500 full-time jobs once it is operational. FMG is expecting to begin production at Eliwana by December 2020.

According to FMG Chief Executive Officer Elizabeth Gaines, the Eliwana development will help maintain the company’s low-cost status.

“The project allows us to commence the supply of Fortescue Premium product to the market from existing operations in the second half of FY19 with volumes increased as Eliwana ramps up to full production.

“This project is important to Fortescue and the state of Western Australia, creating up to 1,900 jobs during construction, 500 full-time site positions once operational and the continued flow of benefits to our communities and the state economy,” Ms Gaines said.

The Eliwana project is going to be delivered over a three-year period, with capital expenditure as follows:

  • FY19 - US$165 million
  • FY20 - US$760 million
  • FY21 - US$350 million

This development is going to be financed from FMG’s operating cash flows at a US$42 per tonne capital intensity.

A definitive feasibility study report (DFS) on the project has been completed and detailed design is set to go underway. FMG is also working on getting two public environmental reviews and a mining proposal approved.

Stay up to date with the latest industry news and project updates by subscribing to Felix Project News today.

Source: Australian Mining, Fortescue Metals Group
Monica Gameng
Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1,000 posts. She truly is an industry expert.
Follow me:

Related Articles

Projects
FMG appoints NRW Holdings to deliver Eliwana iron ore rail project in WA

A new milestone has been reached on Fortescue Metals Group’s (FMG) $1.69 billion Eliwana iron ore project in Western Australia’s Pilbara region with NRW Holdings being appointed as the contractor to deliver Stage One of the rail component of the project.

Projects
Approved Eliwana rail project in WA to create 1120 construction jobs

Fortescue Metals Group (FMG) marks a new major milestone on its $1.7 billion Eliwana Mine and Rail Project in Western Australia with the approval of the project’s rail component as well as the grant of a Special Rail License.

Projects
Works commence at $1.7bn Eliwana iron ore project in WA

The first sod has been turned and works are now underway on Fortescue Metals Group’s (FMG) $1.7 billion Eliwana iron ore mine and rail development located 90 kilometres west-north-west of Tom Price.

Get the latest project news

Formerly known as the PlantMiner blog, Felix Project News is Australia's top 10 Construction blog. Join thousands of construction and mining pros getting the best content right in their inbox.
  • updates on Australia's pipeline of state and federal projects
  • fresh contract awards from major contractors and builders

If you're looking to contact us about other matters, please contact us.