The new product is a major step in the miner's strategy to wring more value from its iron ore after profits halved last financial year.
Fortescue Metals Mining News
Ecuador is being hailed as the biggest potential new source of supply of the metal used in renewable energy.
The company shipped 40.2 million tonnes in the September quarter, compared with 44 million tonnes a year ago
The company said the investment would enable it to sustain production of its Pilbara Blend brand of iron ore and its Robe Valley lump and fines products.
Rising costs, falling metals prices may eat into margins.
Fortescue Metals said that its annual profit halved as prices for its lower quality iron ore fell.
The company's withdrawal means all eyes are now on Fortescue, which still has a 19.9%-stake in Atlas and has not yet disclosed whether it plans to launch a rival bid or sell its holding into Hancock’s offer.
First production from the Pilbara-based project, which it says it’s one of the world’s most technologically advanced, is expected in 2021.
The offer from Australian billionaire Gina Rinehart's Hancock Prospecting values Atlas shares at 17% more than price reached at Friday close.
The contract with the two units of the world's fourth-largest iron ore miner will last until December 2023
Move comes a day after Fortescue Metals said it had built a stake in Atlas large enough to block a takeover.
The CEO of Fortescue Metals Group said that the company is working towards finding other commodities to mine.
The Eliwana mine will help the company lift its iron ore grades and so satisfy the new demands of its biggest customer, China, which is increasingly asking for higher quality ore for steel mills to help cut smog.
BHP shares rose nearly 2 percent, hitting their highest in about 45 months.
The materials industry, which includes miners, trails all other sectors in the Bloomberg World Index on rates of female participation.
While the decision doesn’t ban Fortescue from continuing to operate the mines, it paves the way for the group to sue the company for hundreds of millions of dollars in compensation claims.
Higher commodity exports delivered a record trade surplus of $3.5 billion in December, the second monthly trade surplus Australia has recorded in nearly three years.
Smaller rival Fortescue Metals went the opposite way — it increased iron ore exports by 5% in the Sep. quarter.
Long-term, the deal could be viewed as the first step of a more disciplined approach to iron ore supply by aligning two of the world’s “big four” producers of the commodity.
BHP Billiton began evacuating workers from its Port Hedland export facilities early Friday.
The bank says prices will remain under $40 a ton for the next three years as China’s slowdown forces the sector into a long period of hibernation.
It hit $39.40 a tonne, the lowest price ever recorded by price assessor The Steel Index (TSI), which began compiling data in 2008.
Seaborne with 62% content delivered to Qingdao dropped 0.7% to $51.76 a ton, its sharpest drop in two weeks.
Despite the rosy outlook from Australia’s top iron ore producers, they are all facing staggering demand from their biggest customer — China.
Chinese import price for 62% iron content fines at the port of Qinqdao lost $5.01 or 10.01% of its value to $44.59 a tonne, the largest percentage drop on record.