thanks farmboy i like this article you posted too .. FMG hosted...

thanks farmboy
i like this article you posted too ..

FMG hosted a site visit to its Pilbara operations on 22-23 October. The key take-aways were the:
push for shipments to +175Mtpa and C1 costs into the mid-US$20s/t;
rollout of the diesel to gas conversion strategy is underway;
and +US$200m of working capital to be released.
FMG identified how its current operations could support shipments of +175Mtpa and efficiency programs and initiatives to reduce C1 costs to the mid-US$20s/t. Higher volumes will be led by optimising ore processing facilities, a new plant to process detrital ores, and potentially tailings retreatment. Unit cost efficiencies will be driven by higher plant throughput and initiatives including converting power generation and eventually haulage from diesel to gas, and FMG’s Automated Haulage System driverless trucks.

FMG believe that diesel to gas conversion can halve various energy costs. The company currently spends more than US$800m on fuel. There are opportunities for energy cost savings should FMG expand its diesel to gas energy initiatives across other power stations and its haul truck fleet. The Fortescue River Gas Pipeline is sized to facilitate this rollout.

Free cash flow will remain robust, enabling FMG to continue debt reduction
and dividend payments. We also expect that beyond FY15, FMG will expand production beyond the 155-160Mtpa guidance and reduce costs incrementally