Fortescue Metals Group Limited (ASX:FMG) is intent on doubling iron ore production to 155 million tonnes annually by the end of next year.
Fortescue shares soared yesterday after the iron ore miner announced it will resume expansion work on its low cost Solomon mine in the Pilbara region with the aim of developing its Kings deposit to produce 40 million tonnes a year from next month.
The expansion was put on hold in September following a plunge in iron ore prices that nearly halved Fortescue share prices and forced widespread refinancing and cost cutting measures.
Chief Nev Power says the purpose of the September hold was merely to smooth out capital expenditure and ensure the company didn’t have a big outflow in a short space of time.
Mr Power said the complete development program at the Solomon hub would reduce Fortescue’s costs by up to $US10 per tonne when implemented.
Fortescue Metals generated a net profit of $1.5 billion in the 2012 financial year.
