Fortescue Ltd (FSUMF)

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UPDATE: Fortescue Expects $3.6 Billion Solomon Contract Decision Soon


Fortescue Metals (ASX:FMG)
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1 Month : February 2012 to March 2012

Australian iron ore producer Fortescue Metals Group Ltd. (FMG.AU) said Friday it expects to make a decision on a $3.6 billion mining contract for its Solomon project in the coming weeks, although it may instead opt to operate the planned mine itself.

The Perth-based company said it is in discussions with shortlisted contractors over a possible five-year contract to provide mining services at Solomon, but it is also looking at an owner-operator alternative should it be unable to negotiate a satisfactory agreement.

Separately, Leighton Holdings Ltd. (LEI.AU) said it was negotiating with Fortescue for mining work. Both companies said they would provide further details when a decision has been made.

Fortescue, Australia's third-largest producer of iron ore after Rio Tinto PLC (RIO) and BHP Billiton Ltd. (BHP) by volume, is investing an estimated US$8.4 billion to roughly triple production to 155 million metric tons a year by mid-2013.

It began construction on the first phase of its 60 million ton a year Solomon mining operation last year.

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]