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Media Release
Fortescue Metals Group Limited (“Fortescue�; ASX: FMG) and Mineralogy Pty Ltd
(“Mineralogy�) have signed a Memorandum of Understanding (“MoU�) to investigate
geological, infrastructure, financial, technical and approval matters as a prelude to a
potential project involving the blending of iron ore from both companies.
Fortescue will arrange for sinter tests to establish the productivity of a sinter blend
comprising Mineralogy’s concentrate and material from Fortescue’s Resource within its
Solomon tenement holding. On 15 November 2007 Fortescue announced an Inferred
Resource estimate for the Serenity deposit which comprises part of the Solomon
project area.
INFERRED RESOURCE ESTIMATE – SERENITY
Ore Type Tonnes
Mt
Fe % SiO2 % Al2O3 % P % LOI %
Total tonnes 1,014 56 7.3 3.8 0.081 8.06
Including Upper CID 337 56.7 6.3 2.9 0.079 9.2
Note: These estimates are based upon a minimum Fe grade of 52.5% and a minimum
thickness of 2 metres.
Mineralogy has indicated that the following concentrate specifications could be made
available:
Element Blast Furnace
Grade
Direct Reduction
Grade
Fe 69.5 71.0
Fe2+ 22.5 23.1
SiO2 3.5 1.5
Al2O3 0.092 0.040
S 0.008 0.006
P 0.009 0.007
Na 0.019 0.015
K 0.028 0.017
Mn 0.013 0.010
CaO 0.096 0.070
MgO 0.202 0.148
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Under the terms of the MoU, it is intended that port facilities would be investigated at
Cape Preston capable of exporting a variety of products ranging from high grade
magnetite concentrate through varying blends of magnetite/hematite mix to a ‘direct
ship’ hematite. The plans encompass an initial export capability of around 50Mt/a,
with the potential to expand to more than 100Mt/a.
The Chairman of Mineralogy, Professor Clive F. Palmer stated that “the blending of
Western Australian iron ores to produce high quality direct shipping iron ore products
for specific needs in the iron ore industry is the way of the future for Western
Australian iron ore production.�
Mr. Graeme Rowley of FMG stated that “with Fortescue having the largest iron ore
tenement area holding in the Pilbara and Mineralogy having billions of tonnes of
Magnetite resources and an approved port, the alliance makes sound business sense
for both companies.�
For more information contact:
Professor Clive F. Palmer
Chairman, Mineralogy Pty Ltd
0409 044 489
Julian Tapp
Fortescue Metals Group
08 6218 8888
Paul Downie
Porter Novelli
08 9386 1233
0414 947 129