 |
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| Type | Public (ASX: FMG) |
|---|---|
| Founded | 2003 |
| Headquarters |  Perth, Australia |
| Key people | Andrew Forrest (CEO) Herb Elliott (Chairman) |
| Industry | Mining |
| Products | iron ore |
| Revenue | n/a |
| Net income | n/a |
| Employees | 279 |
| Website | www.fmgl.com.au |
Fortescue Metals Group (ASX: FMG) is an Australian iron ore mining company with large holdings in the Pilbara region of Western Australia. The company is listed as FMG on the Australian Securities Exchange (ASX) and has shown spectacular share appreciation in the last few years.[1] Fortescue Metals is led by entrepreneur and one of Australia's richest men Andrew Forrest. Forrest also founded Anaconda Nickel (now Minara Resources), one of the world's largest nickel miners.
Contents |
Directors:[2]
- Herb Elliott AC MBE: Chairman
- Andrew Forrest: Executive Director
- Graeme Rowley AM: Executive Director
- Russell Scrimshaw: Executive Director
- Ken Ambrecht: Non-Executive Director
- Joe Steinberg: Non-Executive Director
- Geoff Brayshaw: Non-Executive Director
Management
- Paul Hallam: Director of Operations
- Chris Catlow: Chief Financial Officer
- Kevin McLean: General Manager, Port
- Rod Campbell: Company Secretary
- Peter Thomas: General Manager, Rail
- Peter Huston: General Counsel
- Eamon Hannon: Head of Exploration
- Julian Tapp: Government Relations
- Dr John Clout: Resource Strategy
Core Business
Fortescue Metals Group reached a milestone in May 2008 by loading its first iron ore shipment bound for China. Fortescue have at least 10 Chinese steel mill contracts lasting for around 10 years. Baosteel was the first company to receive their iron ore.[3] Fortescue Metals Group is the operator of the mine in Cloud Break. Fortescue also holds major deposits at Mount Nicholas, Christmas Creek, Solomon and Tongolo.
Infrastructure
The company has built a mine, a 260-kilometre railway and a new port at Point Anderson (aka Herb Elliott port) near Port Hedland.
Railway
Fortescue's 220-wagon iron ore trains are amongst the heaviest trains in the world, and are fitted with electronically controlled pneumatic brakes for greater performance.[4] The standard gauge heavy haul railway is used by 35,200-tonne trains up to 2.5-kilometres long carrying 29,000 tonnes of ore at 40-tonne axleload (the weight of the two 4,000-horsepower (3.0 MW) engines is extra). The railway is open access which means that other miners can use it for a fee. Atlas Exports has signed a commercial agreement to use the line and port.[4]
The Fortescue Railway parallels another iron ore railway (the BHP Billiton railway) for over 100 kilometres. Fortescue had sought access to use this line, but BHP declined.[5] The National Competition Council recommended Fortescue should be granted access, but then Treasurer Peter Costello refused the NCC recommendation. However, Fortescue appealed this to the Australian Competition Tribunal. In parallel BHP Billiton sought to overturn the original NCC decision in the Federal and then High Court. On each occasion the judges ruled against BHP Billiton.
The Fortescue rail line has a flyover over the Mt Newman Railway, and a crossing of the BHP Billiton railway.
Shipment
The "first ore on ship" occurred in May 2008, 3.5 years after construction started.[4]
Significant increases in shipments of iron ore from Fortescue's Cloud Break mine were expected over 2008. The initial shipment has been hailed as a strong sign that Fortescue will become an increasingly important force in the iron ore market. Talks on increases in ore prices have bolstered this position as competitor Rio Tinto secured a deal that effectively increased ore prices by 95%. Fortescue has announced that it would use Rio Tinto's benchmark iron ore price for the time being.
Planned shipments in the coming years: 55 million tonnes (current), 80 million tonnes, 120 million tonnes, 160 million tonnes, 200 million tonnes
See also
- Herb Elliott the distance runner, is a director and non-executive chairman of the company.
- Heaviest trains: 32,320 tonnes plus locomotives
- Longest trains: 202 wagons plus two locomotives.
References
- ^ Netquote: Charts
- ^ Fortescue Director Profiles
- ^ Fortescue loads iron ore shipment—Breaking News—Business—Breaking News
- ^ a b c John Kirk (July 2008). "Fortescue opens the world's heaviest haul railway". Railway Gazette International: p. 427. http://www.railwaygazette.com/news/single-view/view//fortescue-opens-the-worlds-heaviest-haul-railway.html.
- ^ Nick Kingsley (2007-03-01). "Fortescue goes its own way". Railway Gazette International. http://www.railwaygazette.com/news/single-view/view/10/fortescue-goes-its-own-way.html.
External links
- Fortescue Metals Group website
- Fortune Magazine story that includes Fortescue
- About to open: May 2008
- FallingRain Map: railways are red dots
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