Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — AJM Global Iron Ore & Steel Forecast Conference 2008
21 slides from Fortescue's conference presentation, Mar 13, 2008
Slide 1: Presentation given at AJM Global Iron Ore & Steel Forecast 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 12 March 2008 For personal use only T
Slide 2: The New Force in Iron Ore Comes of Age
Fortescue Metals Group Ltd For personal use only Aim: The Fastest Growth, Most Competitive Iron Ore Company T ra in U nl o a d er “The New Force in Iron Ore Comes of Age” AJM Global Iron Ore & Steel Forecast Conference 12 March 2008 Fortescue Metals Group Ltd DISCLAIMER Important Notice The purpose
Slide 3: Completing the first 5 year plan
Completing the first 5 year plan For personal use only • The Vision • Team Work • FOOS – MAY 2008 To Reality Fortescue Mine Site - 2008 From Concept Fortescue Mine Site - 2006 2
Slide 4: Executive Summary
For personal use only From Concept To Reality Fortescue Port Site - 2006 Fortescue Port Site - 2008 Executive Summary Multi-decade strong market • Demand driving commodity prices and FMG’s FMG s multiple expansion program • Massive economic growth in China and India is here to stay – and so is FMG F
Slide 5: Exports lag demand, why?
Exports lag demand, why? For personal use only 900 800 700 600 500 400 WA Exports to China 300 Chinese Import History 200 Chinese Logistic Growth Forecast 100 0 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Because the Pilbara has not matched infrastructure capacity and demand gro
Slide 6: ...and China needs the Pilbara
…and China needs the Pilbara For personal use only Fortescue meeting the challenge Open Access Infrastructure • Initially built to support Chichester Range Project • Easy expansion Systematic expansion plans • 0 to 55mtpa – FOOS: May 2008 • 55 to 110mtpa – target 2009/2010 • 110 to 200mtpa • Fastest
Slide 7: Marketing – Sold Out
Marketing – Sold Out For personal use only • Base production target – “Sold Out” • First stage expansion to 110 mtpa already committed • Long term relationships with key Chinese mills • Technical focus on product performance traits underpins steel mill confidence Strong project liquidity 3,500 Cost
Slide 8: FMG Pilbara holdings dwarfs others
FMG Pilbara holdings dwarfs others For personal use only FMG – 40,000 sq. km, Rio – 11,000 sq. km, BHP – 7,000 sq. km Long term reserve, resource and exploration position • Ore reserves of 1.1 Bt, including proved ore reserves of 120 Mt, providing sufficient ore for approximately 20 year mine life a
Slide 9: Easy free dig shallow & extensive ore bodies
Easy free dig shallow & extensive ore bodies 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 high p
Slide 10: Surface miners prove themselves in commercial operations
Surface miners prove themselves in commercial operations For personal use only State of the art rail operations Lowest cost transport in the Pilbara • Clean sheet design captures best of existing technology and moves it on: – Bigger carrying capacity – Electronic braking system – Aerodynamics • 40 t
Slide 11: Putting it all together
Putting it all together Most competitive iron ore company For personal use only • Low cost mining: – Shallow ore body – Free dig overburden – No drill and blast for product – No primary crushing required • State of art railway hauling shorter distances: – Easily capable of rapid expansion • ‘Unconst
Slide 12: Existing Project – 55mtpa
Existing Project – 55mtpa First Ore on Ship For personal use only May 2008 2 Loading Berths 1 Ship loader 3.2mt stockpile Single loop 1 x 2 car train unloader Lump circuit 1Km Port Expansion to 110mtpa 110mtpa Anderson Point 3 berths 6.5mt stockpile Double loop 2x 2 car train unloaders 1Km 11
Slide 13: Port Expansion to 200+mtpa
Port Expansion to 200+mtpa 200+mtpa Anderson For personal use only Point 6 x Cape size + 1 x Panamax berth) 4 x Rail Loop 4 x Train Unloader 200+Mtpa stock y yard 07_038_0521_COR 200 mtpa ore strategy – major hub supply systems WEST PILBARA PRODUCTION HUB EAST PILBARA PRODUCTION HUB 12
Slide 14: Forward into operations
Forward into operations • New Surface Miners outstrip expectations For personal use only • First Ore On Ship (FOOS) expected May 2008 • Project j 90% complete p Cloudbreak village – a new standard in remote accommodation 13
Slide 15: Regular charter flights to Cloudbreak airport
Regular charter flights to Cloudbreak airport For personal use only Screening plant powered up this month 14
Slide 16: Crushing plant being energised now
Crushing plant being energised now For personal use only World’s largest radial stacker to stock pile – completed 15
Slide 17: Train Loader
Train Loader For personal use only Automated track laying machine 16
Slide 18: All major bridges complete
All 8 major bridges complete For personal use only Crossing over BHPB rail completed 17 October 2007 3 March 2008 17
Slide 19: GE locos and ore cars fully commissioned
15 GE locos and over 800 ore cars fully commissioned and in light operations For personal use only The first 5 of 15 FMG locomotives fresh from test building ready for track testing. Locomotives On Stands Train unloader completing electrical installation and cladding 18
Slide 20: Stacker & Reclaimer near commissioning
Stacker & Reclaimer near commissioning For personal use only Wharf and shiploader – very advanced 19
Slide 21: FMG's mine, rail and port will soon pull together
FMG’s mine, rail and port will soon pull together creating the fastest growth, most competitive iron ore company For personal use only 20
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