Fortescue Metals Group’s (FMG) board has approved the development of the Eliwana mine and rail project. The large-scale project is set to create up to 1,900 local jobs for its construction work.
West Australian Premier Mark McGowan has welcomed the announcement by FMG, the world’s fourth-largest iron ore miner. The Eliwana mine and rail project, which will replace the current Firetail mine, consists of a new mine and dry ore processing facility in the Pilbara region, with a 143-kilometer rail infrastructure to be built.
“Development of the Eliwana Project will maintain Fortescue’s low-cost status, providing us with greater flexibility to capitalise on market dynamics while maintaining a minimum 170 million tonnes per annum production rate over 20 years,” said Fortescue’s Chief Executive Officer, Elizabeth Gaines.
The $1.7 billion production is set to commence construction mid-2019, and production to begin around December 2020. The project is expected to yield higher quality ore, along the standard of 62 per cent iron content.
“This project alone has the potential to create up to 1,900 construction jobs and provide 500 ongoing jobs once in operation,” said McGowan.
The project is also set to continue Fortescue’s low-cost status and is set to allow the company to supply premium product from their existing operations in the second half of the 2019 financial year with increased volumes as Eliwana pushes to full production. After a definitive feasibility study on the company by the WA government, the approval processes are now well underway.
“It’s just another sign of our State getting back on track,” voiced McGowan.