The Fortescue Metals Group Limited (ASX: FMG) share price is rangebound today on no news. At the time of writing, Fortescue shares are less than 1% higher at $19.20.
Meanwhile, iron ore is flat at USD$104/T, having extended a reversal period that started on 1 August.
Returns for both are seen on the chart below for the previous 12 months.
Image source: Getty Images
What's up with the Fortescue share price?
After market close on Friday, Fortescue signed an agreement with the Government of Gabon. This was done through its 80% owned company, Ivindo Iron.
Fortescue's signing follows on from agreements made between the company and the Gabonese Government in 2021.
The pair agreed to develop the Belinga Iron Ore Project, located in the Gabonese Republic.
Fortescue now expects to invest approximately US$90 million over 3 years for exploration works at the site. Initially, works will comprise feasibility works and logistical solutions for the project.
Meanwhile, the price of iron ore continues to soften and has retreated to levels of December 2021.
One key driver for the downside is an "extended downturn" in demand for industrial inputs from China, Trading Economics says.
"Demand has also been suppressed by a worsening macroeconomic backdrop for the Chinese economy, with the latest data showing concerning figures for industrial production and retail sales that added to woes regarding the financial stability of the country's property developers," it added.
Whilst the news from Fortescue over the weekend appears to be positive, the share price looks to be offset by troubles in the iron ore price today.
It remains more than 5% down over the past 12 months, or 1% down this year to date.
