A subsidiary of Fortescue Metals Group (ASX:FMG) FMG Magnetite and joint venture partner Formosa Steel IB have approved the development of Stage 2 of the Iron Bridge Magnetite Project.
The total capital costs of stage 2 is US$2.6 billion.
The Project is located 145km south of Port Hedland and owned through an unincorporated joint venture between FMG Iron Bridge who own 69 per cent and Formosa who have 31 per cent.
MG Magnetite is a subsidiary of FMG IB, a Hong Kong registered company 88 per cent owned by Fortescue (88 per cent) and a subsidiary of Baosteel Resources International Company Limited (Baosteel) (12 per cent).
This Stage 2 development follows the US$0.5 billion investment in the successful Stage 1 construction of large scale pilot and demonstration plants which have validated key equipment and magnetite production processes for the full-scale Stage 2 ore processing facility.
Shares in Fortescue Metals Group (ASX:FMG) trading 3.4 per cent higher at $7.68.