Fortescue Metals Group Ltd (ASX:FMG) has warned that costs to fund its $US8.4 billion expansion could rise, according to the Australian Financial Review.
The iron ore miner is currently advancing plans to triple production to 155 million tonnes per annum.
The AFR says rising labour and equipment costs and a stronger Australian dollar are putting pressure on the company.
Fortescue reportedly has $US200 million in savings for the expansion which would help offset the rising costs.
However, according to the paper, some analysts have predicted the expansion will cost as much as $US10 billion.
In the first half of the 2011 financial year Fortescue Metals generated net profit of $309 million.
