twiggy to get shovel out if needed...hehe

Tycoon ready to shovel iron ore
Elizabeth Gosch | March 13, 2008

FORTESCUE Metals Group was so determined to meet its self-imposed shipping deadline it would load the valuable iron ore by shovel if necessary, Andrew Forrest said yesterday.

Responding yet again yesterday to what must be the most-asked question about FMG, Mr Forrest reiterated that the Pilbara miner was on track to ship its first load of ore out of the Port Hedland port in May.

He said FMG would have its first ore on trains in April to meet that deadline.

"If we have to load that train with a shovel we will," he told journalists at an iron ore and steel conference.

At the end of January, FMG's railworks were 85 per cent complete in the $2.77 billion project.

Offshore investors have been keen to get behind Mr Forrest and FMG's Pilbara iron ore vision, but the company has been dogged from the start by a lack of trust from local institutions and shareholders.

They have been especially doubtful that FMG would deliver on the May deadline for first ore on ship.

The tide appears to be turning, with one analyst admitting during questions at yesterday's conference that he had underestimated FMG's ability to come through with the goods.

FMG's first shipment of iron ore is headed for China's Baosteel Group Corp and yesterday Mr Forrest said the company had indicated it could be interested in increasing its offtake agreement as FMG's production increased.

FMG and Baosteel signed a $10 billion offtake agreement a year ago for an initial 5 million tonnes a year and then an additional minimum of 11 million tonnes and up to 15 million tonnes a year.

Delivering his standard investment speech to the conference yesterday, Mr Forrest said workers on the miner's railway were so enthusiastic and productive that talk had begun about simply continuing through to the Christmas Creek project, further into the Chicester ranges.

"It's about six one way and half a dozen the other as to whether we should just keep building down past Cloud Break all the way to Christmas Creek," he said.

He also reiterated his opinion that a new BHP Billiton railway in the Pilbara would increase inflationary pressure in WA.

BHP Billiton has announced plans to build a new railway into Port Hedland along the same route as the almost complete FMG line.


http://www.theaustralian.news.com.au/story/0,25197,23364724-5005200,00.html