Ann: Trading Halt, page-25

Could Formosa Plastics be pushing ahead with Iron Bridge Project? Formosa has already invested $1.5 billion on that project (see http://www.australianbusinessjournal.com.au/taiwan’s-formosa-invests-1-15bn-in-fmg-iron-bridge/), and many times that on the integrated steel mill in Vietnam. I paste information found on the Internet below:

“The $28.5 billion integrated steelwork being developed by Taiwan's Hung Nghiep Formosa Ha Tinh Steel Limited Company includes six blast furnaces, a 32-berth seaport, and a 2,150 MW coal-fired generating plant. The plant will be one of the world's five largest steel plants. Construction on the entire complex is expected to continue through 2020. Formosa Plastics Group owns 95 percent of the project, with China Steel owning the other 5 percent.

In June 2011, construction began on Phase 1 of the project, after three years waiting for site clearance. Phase 1 will include 650 MW of coal generating units, and will give the plant total capacity of 7.5 million tons of steel per year, costing $8.9 billion. Phase 1 of the complex is scheduled to be completed by the end of 2015. The first batch of steel is scheduled to be produced at the plant in May 2015.

NWH's FY2014 Annual Report stated that NWH was awarded early works contract at Fortescue's Iron Bridge Project in joint venture with Njamal ICRG JV Pty Ltd. See also the Fortescue announcement http://fmgl.com.au/media/2069/media...ilestone-for-njamal-traditional-owners225.pdf. If Iron Bridge goes ahead, NWH via Njamal ICRG JV Pty Ltd would get the work.

What makes this project different is that it is not a China story. The steel mill is in Vietnam, and the substantial owners are Tiwanese. Also, they will be thinking many years ahead, and ensuring they have a committed IO supplier, plus the deal is that they get the IO at market price.