Monday, October 15, 2012

Fortescue Seals US$5 Billion Debt Facility, Mulls Mine Restart

Published October 14, 2012

Dow Jones Newswires

Fortescue Metals Group Ltd. (FMG.AU) Monday said the completion of a US$5 billion debt facility will allow it to consider restarting a new mine development in Western Australia state's Pilbara region should iron ore prices continue to recover.

The world's fourth-largest iron ore miner by output upgraded the facility to US$5 billion from US$4.5 billion to pay off existing loans and provide a liquidity buffer.

"Subject to iron ore market conditions, this additional liquidity will enable detailed consideration of the recommencement of the Kings expansion," the company said.

The Perth-based miner in September set a near-term production target of 115 million metric tons a year by deferring development of its Kings deposit. It had previously targeted an expansion to 155 million tons of production capacity by June 2013.

Write to Ross Kelly at ross.kelly@wsj.com

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Copyright ? 2012 Dow Jones Newswires

Source: http://feeds.foxbusiness.com/~r/foxbusiness/markets/~3/7Y-0YAlObw4/

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