awards dredge contract/establishes us$200m debt fa

Fortescue Awards Dredge Contract and Establishes US$200 million Debt Facility
Fortescue Metals Group Ltd (“Fortescue’) is pleased to advise that it has signed an
agreement with Jan de Nul NV for the dredging for its port at Anderson Point, Port
Hedland.
Fortescue can also advise that it has put in place a US$200 million syndicated loan note
facility with institutional investors.
Dredging Contract
Fortescue’s wholly owned subsidiary The Pilbara Infrastructure Pty Ltd has entered into
a contract with Jan de Nul NV for the dredging of the port area at Anderson Point, Port
Hedland.
The Jan de Nul Group operates worldwide and specialises in dredging, land reclamation
and marine related projects. It employs approximately 3,000 people and has an annual
turnover in excess of Euro770 million. The Group ranks among the top international
dredging and civil engineering contractors.
The vessel CSD “Leonardo da Vinci” has been scheduled for the work. This ship is one
of the largest dredges in the world and has previously worked in the Pilbara region on
the North West Shelf development.
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The dredging of the port is an important component of the development of the project
and it is on the critical path of the overall schedule. The earthworks for containing the
dredge spoil commenced in February 2006 and is on track to allow the dredge vessel to
commence work in June 2006. It is anticipated that the dredging work will be completed
in February 2007.
US$200 Million Syndicated Loan Note Facility
Fortescue has put the facility in place to ensure the rapid development of its Pilbara Iron
Ore and Infrastructure Project is maintained without compromising its capital raising
process.
The establishment of this term facility provides Fortescue with time and flexibility to
optimise the respective debt and equity components of its project finance program while
continuing the expedited delivery of the project.
The key terms and conditions of the facility are;

The facility term is 2 years subject to a review after 12 months;

Pricing is based on a competitive margin over LIBOR;

The facility is secured over the project assets.
The US$200 million facility was arranged by Citigroup. Due to strong demand the
original facility amount sought was increased to accept some of the over-subscriptions
received.
With the establishment of the syndicated loan note facility Fortescue is scheduling other
key construction and procurement contracts to maintain the integrity of the project
timeline. Fortescue is targeting project construction with commissioning to be
completed by Q1 2008. The first shipment of ore is targeted for on or before this date
noting that shipping can commence prior to the conclusion of final commissioning.

Yours sincerely

Fortescue Metals Group Ltd
Rod Campbell
Company Secretary