Shares in Fortescue Metals Group have jumped after the iron ore miner said it would go ahead with its $US2.6 billion ($A3.66 billion) Iron Bridge magnetite project in Western Australia.
Fortescue subsidiary FMG Magnetite and joint venture partner Formosa Steel IB announced their backing for the mine 145km south of Port Hedland on Tuesday, hailing the project's planned production of a 67 per cent iron content concentrate starting from 2022.
"We are confident this project will deliver growth in earnings and cashflow, resulting in enhanced returns to our shareholders and our joint venture partners through all market cycles," Fortescue chief executive Elizabeth Gaines said.
"We believe the premium product from the Iron Bridge Project will be very competitive, particularly as steel mills are now looking to increase productivity," Formosa representative Wilfred Wang said.
Fortescue shares were up 3.23 per cent to $7.62 at 1345 AEDT on Tuesday, hitting their highest point in more than 10 years.
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