Fortescue Metals Group Limited (ASX: FMG) has commenced production at the Iron Bridge Magnetite Project, 145km south of Port Hedland in Western Australia.
Fortescue shares are rising 0.14% today and are fetching $20.98 at the time of writing. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is sliding 0.39% today.
Let's take a look at what Fortescue announced to the market in more detail.
What's happening?
Fortescue has produced maiden magnetite at Iron Bridge at a first run grade of more than 68% Fe (iron).
The high grade magnetite product is now ready for shipping and suitable for steelmaking after being transported through a 135km slurry pipeline.
Iron Bridge will produce 22 million tonnes of high grade magnetite concentrate per year.
The project has involved nearly 20 years of planning and included more than 20 million hours of work.
Commenting on the news, Fortescue executive chairman Dr Andrew Forrest AO said:
Iron Bridge will lead the way for a successful magnetite industry in Western Australia and is a
game changer for not only Fortescue, but the wider iron ore industry.
More than 20,000 jobs were created for the Iron Bridge project and $3.6 billion worth of goods and services were sourced within Western Australia.
Commenting further on the project, Fortescue CEO Fiona Hick said:
The construction of Iron Bridge, Fortescue's first magnetite operation, was complex particularly while managing the added challenges resulting from COVID-19 and border closures.
I'm particularly proud that the team was able to deliver this project while maintaining strong safety performance.
Our focus is now on achieving safe and efficient ramp up.
Increased iron ore production could have a positive impact on Fortescue's net profit after tax (NPAT).
Iron ore futures are currently up 0.09% to US$102.05 a tonne on the Singapore Exchange.
Fortescue share price snapshot
Fortescue shares have lost 3.09% in the last year.
The company has a market cap of about $64.6 billion based on the latest share price.
