Fortescue Metals Group LtdACN: 002 594 87287 Adelaide Ter race...

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.
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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