Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Investor Presentation (July 2005)
25 slides from Fortescue's investor presentation, Jul 6, 2005
Slide 1: Fortescue Update July 2005
Fortescue Metals Group Ltd Fortescue Update July 2005 The New Force in Iron Ore DISCLAIMER Data and amounts shown in this presentation relating to capital costs, operating costs and project timelines are internally generated best estimates only. All such information and data is currently under revie
Slide 2: The Pilbara Iron Ore and Infrastructure Project
The Pilbara Iron Ore and Infrastructure Project The New Force in Iron Ore Overview ¢ 45mtpa iron ore exports commencing 2007 * Top 200 S&P ASX Company « $70 million invested to date ¢ $80 million in cash, plus receivables at 30 June 2005 ¢ All approvals in place or expected shortly « Construction on
Slide 3: Cloud Break & Christmas Creek a fraction of Fortescue's Pilbara holdings
Cloud Break & Christmas Creek a fraction of Fortescue’s Pilbara holdings Distance equivalent: Los Angeles to San Francisco Today’s Update The New Force in iron Ore * Resources * Metallurgical testwork ¢ Mining Plans ¢ Infrastructure Definitive Feasibility Study (DFS) * Approvals * Project Implementa
Slide 4: A Remarkable Achievement in Two Years
A Remarkable Achievement in Two Years Resource and Reserve by Project 2005 (mines and committed projects} 2000 mined 1500 1000 500 Konlyanoteings mesa KA. Notes + Dafa derived or calculated fiom best + Marlite-goethite high P Brockman ores and government public reports. are under represented due fo
Slide 5: Drilling Summary
Drilling Summary RC ; Diamond Bulk Holes Matres / Holes Metres | Holes Metres i c doce 3,193 128,186 | 118 2,638 15 336 Cond Pao 16308 - Mt Levin / 381 15,624 | 13 369 - - Resource Summary ‘Target - May “Aétuals dae Target = DES Christmas Creek ‘otat Be Suna Measured - : : : 300 100 200 Indicated Gi
Slide 6: Pilbara Iron Ore
Pilbara Iron Ore Premium L “hy, affbomacesmns sesentecnearia rei ehos ow : Normal Marra Brockman ; FMG 7 ate Fe 62 ~ 64% Fe High Phos Brockman ‘ ; Yandi Pisolite 61 - 62% Fe 37 - 58% Fe 6 The identification of microplaty hematite at such shallow depth and across such large strike tength is one of th
Slide 7: Iron Ore Comparison
Iron Ore Comparison % 00 4 Weighted Average Uncalcined Fine Iron Ores 68.00 Iron Grade 66.00 9 64.00 9 cS - 62.00 4 60.00 4 $8.00 3 FA a 3 = z ie 56.00 = Data Sources: Robe River -- Website, BEEPB -~ Direct from Company, HI ~ industry Sources, PMG -- Own Tests, AME Iron Ore Comparison Calcined Fine
Slide 8: Iron Ore Comparison
Iron Ore Comparison Calcined Fine Iron Ores Phosphorous 80 8070 2.060 2.80 = bo g z 8.50 = g 3 ; = a z 220 z 3 2 Z = < § = m & 3 3 4 z < Fy £ = & 2 a fe z g é : = = j : & 5 ado | a f = ra 2 z | 3 & 2 & & S 4 & = 2 z z 2 2 BS S & cI a bad = iS] 8.000 Data Sources: Robe River » Website, BHP Direct fro
Slide 9: Comparisons of Size and Chemistry of Christmas Creek Fine Ore
‘T.Fe SHR AROS s P 101 Fee TI AL bl SI RGE Ri % % %e % Yo %e % % Ye % % % ay + 6.3nau! -0.Smm | -6.3 mn) +i om! -3mm EMG HG Lump Target 61 5 28 | Las bars | ray 66.2 3) B49 Typical Marra Mamba"2 | 62.8 ‘Typical Brockman*3 68.4 Typical 143 Pisolite*2 | 87.4 ‘Typical HG Pivolite*3 | $8.9 4 es consid s
Slide 10: Metallurgical Summary
TT co dos (40 | 0. a FMG NG Fines Target - Yr I to 6 602 3.6 = BL 0.056 0.030 0.04 0.08 FMG Vr 7+ Wet Plant Fines Feed 875. 8.1 29 0.053 0.039 0.08 0.12 FMG ¥r7+ Wer Plant Fines Product | 60.50 4.3. 1.7 0.051 0.025, 0.04 011 * Prodaet Mix Y¥ 35% lump and 65% fines product on ship * Years 1 tot ¥ Hig
Slide 11: Christmas Creek Proposed Pit Outlines
E4642 Christmas Creek Proposed Pit Outlines 10
Slide 12: Cloud Break - Proposed Mine Plan
Cloud Break - Proposed Mine Plan \ scagteagy Na Cloud Break CHRISTMAS CREEK EXAMPLE CROSS SECTION 11
Slide 13: Current Mine Plan - Tonnes Sold
Current Mine Plan - Tonnes Sold Mine - Mt Cloud Break 20 15; 9 High Grade Christmas Creek , 25 30 | 36 | Cloud Break Beneficiated Christmas Creck Tota | Chichester Cross Section FORTESCUE METALS GROUP. DIAGRAMATIC CROSS SECTION LOOKING WEST Not to Sesle, Vertically Cxsaperstad GENERAL CHICHESTER RAN
Slide 14: Open Pit Cross Section - Showing Mining
ining Open Pit Cross Section - Showing M Waste Stacking In Pit
Slide 15: Surface Miner
Surface Miner Major Capex and Opex Implications NS ai “ina + Eliminates need for Drill & Blast, Primary & Secondary Crushing + Vibrations, noise and dust loads are reduced considerably + Material cut into small lumps facilitating conveyor belt transportation + German technology with 20 years of oper
Slide 16: Infrastructure Development Update - SLC
SM2600 Roll with Picks Infrastructure Development Update - SLC * Significant capex reductions achieved * Optimisation of rail reute and design confirmed * Mine, rail and port earthwork design completed at 1m contour accuracy * Bulk material handling optimised * Chinese procurement options well advan
Slide 17: FMG Proposed Rail Line
—+ FMG proposed Rail Line GHP Raif Line —~ Highway Ye FMG proposed Mine Site © Town/Settiement # aLgource| wont . coma ‘SMARANOGO, SACUNT SGLOSWORTHY SSHAY SAR - CHARBLEBAR -. eNULLAGINE ak Christmas Creek << Mount Lewin ~ tage Va Nicholas 16
Slide 18: Port Material Handling Layout - Current Proposal
Port Material Handling Layout - Current Proposal WorleyParsons ~ Latest Capex Estimate Area Capex (ASm} Major component Probable supplier Port 650 - 750 Dredging Jans de Nut, Boskalis, Dredco, Van Ord Marine Structures Clough, MeConnelf Dowell Ove handling ThyssenKrupp, ZPMC, Metso Electrics Siemens
Slide 19: State Agreements
State Agreements * Act of Parliament passed for Infrastructure State Agreement in November 2004 + Mining State Agreement expected to receive Government approval by July 2005 + Mining State Agreement gives Fortescue right to mine 45 mtpa + Fortescue expansion over 45 mtpa will require further mining
Slide 20: Aboriginal Heritage and Native Title
Aboriginal Heritage and Native Title + Collaborative long term approach * Vocational Training & Employment + April meeting of all claimants successful + Land Access Agreement nearing completion + Meeting planned for late June to; ¥ Complete outstanding issues ¥ Negotiate Monetary Compensation + Fina
Slide 21: Declaration of BHP Billiton Mt Newman Railway
Declaration of BHP Billiton Mt Newman Railway + National Competition Council (NCC) (Federal Government) decided in December 2004 that BHP’s Mt Newman line be considered for declaration + BHP applied to the Federal Court to attempt to injunct NCC from considering Fortescue’s case - hearing in 4Q 2005
Slide 22: Construction Partners
Construction Partners MULTIPLEX AA EDD FADD Project Implementation Project Coordination Port Mine » Dredging » Earthworks » Mine Fleet + Marine * Rail Steet * Ore structures mote processing/handling + Ore handling * Sleepers » Power + Power » Wagons Wat + Water » Locos er + Miscellaneous . » Miscell
Slide 23: Project Finance
Project Finance citigroupl” GRANT SAMUEL MILLER MabPHIS DYNAMICS World’s largest bank Leading Australian Corporate Adviser Leading U.S. Steel Industry Investment Bank World’s Leading Steel Information Service ane Reserves & Mineplan Christmas Creek Cloud Break Capex/Opex RailPort Mine tnfrastracture
Slide 24: Timeline to Production 2007
Timeline to Production 2007 % of Capex 100% 73% 50% ‘Delinitise Keanibiliny TEL Pees Study Cam aative Cash Flow am Qa ied a] Qa ed a val Qe Qe Qs Os Qe Qu Qs a a QR Qs vad 2003 2004 2005 2006 2007 Top 20 Shareholders June 30 2005 Entity i Shar ng Percentage 1. The Metal Group 102,674,330 a7 2. Citic
Slide 25: Fortescue Metals Group Ltd A one-off Australian opportunity
q g « Fortescue Metals Group Ltd 66 A one-off Australian opportunity unlikely to be repeated in the future 99 The New Force in tron Ore Fortescue House 50 Kings Park Road West Perth Western Australia www.fmgl.com.au Fortescue Update July 2005
Fortescue Metals Group — Investor Presentation (July 2005) on 6ix