Fortescue upgrades production targets for Solomon

Fortescue Metals has increased the annual production target at its Solomon iron ore mine in the Pilbara from 60 million tonnes to 100 million tonnes.

Fortescue Metals has increased the annual production target at its Solomon iron ore mine in the Pilbara from 60 million tonnes to 100 million tonnes.

However, the company also foreshadowed further expansions up to 160 million tonnes per annum in the future.

The capital expenditure for the first expansion is expected to be around US$3.24 billion, while the second would cost US$5.7 billion, taking total expenditure on the mine to $8.94 billion (about A$9.76 billion).

Fortescue has plans to develop a Western Rail Hub to link the mine to the proposed Anketell Point deepwater port, near Port Hedland, if it could gain access to the Rio Tinto rail network.

The WA Government last week gave the proposal the green light and promised $3.5 million to aid construction.

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