IMO Fortescue's announcement this morning doesn't bode well for SDL:
Fortescue Metals Group (ASX: FMG, Fortescue) is pleased to advise that the Board has approved the development of the Eliwana mine and rail project, located in Western Australia’s Pilbara region.
Eliwana Highlights:
• Estimated capital cost of US$1.275 billion
• 143 kilometres of rail, a new 30mtpa dry ore processing facility (OPF) and infrastructure
• Production commences December 2020 with a life of mine strip ratio of 1.1
• Underpins the introduction of a 60% iron grade product (Fortescue Premium) in the second half of FY19
• Financed from operating cashflows at a capital intensity of US$42 per tonne
Fortescue’s Chief Executive Officer, Elizabeth Gaines said “Development of the Eliwana Project will maintain Fortescue’s low cost status, providing us with greater flexibility to capitalise on market dynamics while maintaining a minimum 170 million tonnes per annum production rate over 20 years.”
SDL Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
