Fortescue lifts lid on Eliwana production plans

PERTH (miningweekly.com) – Iron-ore miner Fortescue Metals has applied for environmental approval for new capacity of 50-million tons a year in the Pilbara, but the company was quick to point out that the application does not reflect a production guidance.

Fortescue, which last year spearheaded a campaign to force Australia’s big iron-ore producers to cap their production, has lodged an environmental application with the Western Australian Environmental Protection Authority for the development of the Eliwana mine, some 90 km northwest of Tom Price.

The miner said it would produce about 30-million tonnes a year from the project, over an estimated mine life of 24 years, but that infrastructure would be constructed to reflect peaks in production of up to 50-million tonnes a year.

Fortescue said the environmental application for the Eliwana mine was consistent with normal approval processes and would allow future flexibility.

“Fortescue determines its production rate in response to market demand and our customer needs, and will continue to provide guidance consistent with our continuous disclosure obligations,” the miner said.

The Eliwana mine will replace the Firetail operation, which will be depleted by 2019 or 2020. The Firetail operation produces about 27-million tonnes a year.