Fortescue Metals is developing a $1.7 billion mine and rail project in Western Australia.
The Eliwana project, located in the Pilbara region, is estimated to cost $US1.275 billion ($A1.687 billion) and will include the development of 143 kilometres of rail, a new dry ore processing facility, and associated infrastructure.
Chief executive Elizabeth Gains on Monday said the Eliwana project will maintain Fortescue's low-cost status and will also allow the company to supply premium product from existing operations in the second half of the 2019 financial year.
It will also create up to 1,900 jobs during construction and 500 full-time site positions once operational, she said.
Last month, Fortescue said it shipped less product at a higher cost in the three months to March, following a rise in cyclone activity across its WA operations.
The Pilbara miner shipped 38.7 million tonnes of iron ore in the three months to March 31, down two per cent from the 39.6 million tonnes recorded a year earlier, and four per cent lower on the second-quarter.
