Fortescue Metals Group Reveals Huge Increase in Iron Ore Deposit in Pilbara
Fortescue Metals Group – the Perth-based company and world’s fourth biggest iron ore miner – has announced a dramatic increase in the amount of iron ore it had previously estimated at the Greater Solomon deposit in the Pilbara region.
The new discoveries include “bedded mineralization in Brockman and Marra Mamba Iron Formations, Channel Iron Deposits and Detrital Iron Deposits.”
The reported addition boosts the mineral resource 77 percent – 1.6 billion tons – to a total of 2.66 billion tons. Specifically, the Firetail mine, Kings Valley mine and other places of resource for the company’s Solomon hub have grown to more than 4.5 billion tons. The mineral resource at the Eliwana-Flying Fish Project, another of Fortescue’s, has also been increased by 116 million tons, to a total of 740 million tons.
These discovery successes can be largely attributed to the exploration program that Fortescue founded in 2003. Another drilling program is set to be conducted around the nearby Chichester Range in June and July of this year.
Shares in the current gloomy market leapt 3.4 percent on Tuesday, leading experts to believe that investors may once again be attracted to the stock.
Just a day ago, the company’s shares dropped 4.6 percent to an 8-month low; Fortescue’s share price has fallen 20 percent this year. News that the iron ore price fell below the “psychological floor” of $100 per ton for the first time in two years has driven the dive in prices. The two-year low is attributed to the uncertainty of the Chinese steel output and an increase in supply.
Fortescue will need to look towards the potential strike by tugboat workers at Port Hedland in the coming days. The strike could cut 10 million tons from the miner’s shipments this year, further affecting their stock.
