FMG 0.75% $22.42 fortescue ltd

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    Fortescue Metals Group Ltd
    ACN: 002 594 872
    87 Adelaide Ter race Eas t Per th
    Wes tern Aust ral ia 6004
    PO Box 6915, Eas t Per th, Wes tern Aust ral ia 6892
    Telephone: + 6 1 8 92 66 0 111
    Facs imi le: + 6 1 8 926 6 01 88
    Webs i te: www. fmg l . com. au
    6 June 2006
    The Companies Officer
    Australian Stock Exchange Ltd.
    Exchange Plaza
    2 The Esplanade
    PERTH WA 6000
    Dear Sir
    Pilbara Mining Alliance with Roche Mining
    Fortescue Metals Group Ltd (“Fortescue”) is pleased to announce that it has entered into a
    long term mining alliance with Roche Mining (“Roche”) to be known as the Pilbara Mining
    Alliance (“PMA”).
    Roche is a division of Downer EDI Limited and is one of Australia’s major providers of mining
    services, including mine planning, underground and open pit mining services, materials
    handling and processing, blasting services and mineral separation. Before entering into this
    arrangement, Roche held over 30% of the contract mining market in Australia and has
    extensive experience in operating large scale bulk material mining equipment including
    bucket wheel excavators and conveying systems.
    Fortescue considers Roche to be an ideal partner as it has fully developed capabilities
    across all aspects of the mining cycle through its various subsidiaries, Snowden Mining
    Industry Consultants, Roche (MT) (formerly Mineral Technologies) and Roche Mining (JR)
    (formerly JR Engineering). Fortescue’s established long term relationship with Snowden and
    Roche Mining (MT) and their intimate understanding of Fortescue’s geology, mineralogy and
    proposed mining systems, means that PMA will be able to commence its activities
    immediately with a fully informed core management team.
    Fortescue and Roche are committed to developing PMA in meeting its current and future
    contracts by the safe extraction and processing of iron ore. PMA will be initially responsible
    for the development of Fortescue’s flagship deposits at Cloud Break and Christmas Creek
    and the operation of these mines and the associated ore processing centre.
    Page: 2
    PMA will operate on an open book “best for project” basis and will strive for continual
    improvement through innovation and a passion to inspire positive change.
    Over the initial five year term it is envisaged that PMA will be responsible for moving more
    than 850 million tonnes of material and managing in excess of A$1.9 billion of Fortescue’s
    operating costs. It is, however, envisaged that PMA will continue beyond the initial term and
    Fortescue is looking forward to a long term, mutually rewarding relationship with Roche.
    Yours sincerely
    Fortescue Metals Group Ltd
    Rod Campbell
    Company Secretary
 
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