Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Metal Bulletin Conference 2007
22 slides from Fortescue's conference presentation, Nov 27, 2007
Slide 1: Cover letter to ASX: Presentation given at Metal Bulletin Conference
Fortescue Metals Group Ltd Telepho ne: + 6 1 8 6 2 1 8 8 8 8 8 ACN: 002 594 872 Facsimile: + 6 1 8 6 2 1 8 8 8 8 0 87 Ad elaide Terrace East Perth Web site: w w w . f m g l . c o m . a u Western Au stralia 6004 PO Box 6915 , East Perth , Western Au stralia 689 2 27 November 2007 For personal use onl
Slide 2: The New Force in Iron Ore / Disclaimer
Fortescue Metals Group Ltd THE NEW FORCE IN IRON ORE For personal use only An Australian Story A World of Opportunity T ra in U nl o d a er Metal Bulletin 27 November 2007 Fortescue Metals Group Ltd DISCLAIMER Important Notice The purpose of this presentation is to provide general information about
Slide 3: From 2003 to 2007: From Concept to Reality
From 2003 to 2007 For personal use only • The Vision • Team Work • Government Support • Committed C itt d Contractors C t t To Reality From Concept Fortescue Mine Site - 2004 Fortescue Mine Site - 2007 2
Slide 4: Executive Summary
Executive Summary For personal use only Fortescue’s perfect timing – Strongest markets for decades • Demand driving commodity prices and growth ambitions • Credit and Equity markets have large appetite for Iron Ore / China exposure Fortescue is set to become one of the world’s leading iron ore compa
Slide 5: Actual & Projected Chinese Iron Ore Imports
Actual & Project Chinese Iron Ore Imports For personal use only China Requires that Australia Recover Market Share Chinese Im ports by Source 80.00% Infrastructure constraints limit Australian 70.00% response leading to falling market share 60.00% 50.00% Aust Brazil 40.00% India S.Africa 30.00% Othe
Slide 6: China needs the Pilbara
China needs the Pilbara For personal use only • Australia is the most competitive supplier to Asia • Three companies globally set price and dominate the seaborne market • Fortescue plans to be the 4th major seaborne supplier Fortescue will meet the challenge Open Access Infrastructure • Initially bu
Slide 7: Massive Pilbara holdings
Massive Pilbara holdings 40,000 square kilometres For personal use only Unparalleled Assets – Significant Reserves & Resources • One of the largest bedrock hosted iron ore discoveries in Australia • Ore reserves of 1.1 Bt, including proved ore reserves of 120 Mt, providing sufficient ore for approxi
Slide 8: Shallow & Extensive Ore Body / Competitive Cost
Unparalleled Assets – Shallow & Extensive Ore Body For personal use only Ore Body Characteristics • Free digging over burden low cost removal • Mineralisation gently undulating - typical dip at 2° to 5° • Mineralised thickness varies between 3 metres and 20 metres • Multiple mining faces facilitate
Slide 9: Innovation & Functionality / Marketing – Sold out
Innovation & Functionality For personal use only Surface Miners deliver efficiencies and cost competitiveness • Enhanced grade control • No drill and blast in ore zone • No primary crushing • Higher Hi h lump l ratio ti Marketing – Sold out • Base Production Target – “Sold Out” • First Stage Expansi
Slide 10: Optimise Project / Significant Project Liquidity
Optimise Project – 55 mtpa First Ore on Ship For personal use only May 2008 2 Loading Berths 1 Ship loader 2.5mt stockpile Single loop 1 x 2 car train unloader Lumpcircuit 1Km Significant Project Liquidity 4,000 Equity Raising F.O.O.S. Millions (AUD) Equity Raised allocated to Project 15/05/2008 Cos
Slide 11: Progressive Growth Trajectory
Progressive Growth Trajectory For personal use only • Fortescue has built a team of experienced staff and contractors – FMG/Worley Alliance performing strongly – Blue chip contractors committed to project success • Staged, continuous T200 growth, maximises stakeholder value and minimises risk – Remo
Slide 12: Port Expansion to 200mtpa
Port Expansion to 200 mtpa 200 mtpa Anderson Point For personal use only 6 X Cape size + 1 X Panamax berths) 3rd Rail Loop + requisite Train Unloaders 200mtpa p stock yard y 07_038_0521_COR Resource target areas – 200 mtpa Port Hedland Point Samson Dampier p 200Mtpa LEGEND FMG Tenements Ore Processi
Slide 13: Latest Project Highlights
Latest Project Highlights • New Surface Miners outstrip expectations For personal use only • First Ore On Ship (FOOS) expected mid May 2008 • Port at ~ 83% complete, p , mine at ~ 75%,, and rail at ~ 67% Permanent Camp – Cloud Break Mine 12
Slide 14: Cloud Break Airport and Surface Miners
Cloud Break Airport Open – Three Charter Flights per week to Minesite For personal use only Surface Miners in First Commercial Pit 13
Slide 15: Mine Construction At Full Speed And On Schedule
Mine Construction At Full Speed And On Schedule For personal use only Reclaimed iron ore Crushing & Screening Train Loader & Vault Plants Rail Terminal Crushing Plant 14
Slide 16: Screening Plant and Train Loading Vault
Screening Plant For personal use only Train Loading Vault 15
Slide 17: Rail
Rail For personal use only Total Rail Line Cleared (260 kms) Rail earthworks on eight separate construction fronts and all bridges advanced Automated Track Laying Machine 16
Slide 18: East Turner Bridge complete
East Turner Bridge complete For personal use only Crossing Over BHPB Rail Track 17
Slide 19: Rail Marshalling Yard
Rail Marshalling Yard For personal use only Rail Supplied By Panzhihua Steel 15 GE Locos Arrive at Port Hedland The first 5 of 15 FMG locomotives fresh from test building ready for track testing. Locomotives On Stands 18
Slide 20: State of the Art Ore Cars
State of the Art Ore Cars For personal use only Ariel View Of Wharf In Position 19
Slide 21: Port Conveyor
Port Conveyor For personal use only Stacker Tripper 20
Slide 22: Ore Car Unloader And Conveyor Outlet
Ore Car Unloader And Conveyor Outlet For personal use only 21
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