Months after cutting back on its expansion plans Fortescue Metals Group Limited’s
(ASX:FMG) founder Andrew Forrest has reportedly affirmed his confidence the company’s growth will rebound.
Mr Forrest told News Corporation he is committed to finishing new iron ore mine projects and reaching the company’s development targets as well as possibly restarting suspended projects by the end of next year.
The comments come after the iron ore miner outlined plans to cut spending, its expansion and more than 1,000 staff in September in response to plunging prices for its main product iron ore.
Mr Forrest told the publication the recent cuts have lowered the company’s cost base by 10 to 15 per cent, bringing it closer to its goal of sitting in the bottom 25 per cent of operations-cost operators.
Mr Forrest has also stated the price of iron ore has bounced back and forecast China will continue to grow and urbanise at a sustainable rate.
Fortescue Metals Group generated a net profit of $1.5 billion in the 2012 financial year.
