Fortescue Metals Group Reveals Huge Increase in Iron Ore Deposit in Pilbara
Fortescue Metals Group – the Perth-based company and world’s fourth biggest iron ore miner – has announced a dramatic increase in the amount of iron ore it had previously estimated at the Greater Solomon deposit in the Pilbara region.
The new discoveries include “bedded mineralization in Brockman and Marra Mamba Iron Formations, Channel Iron Deposits and Detrital Iron Deposits.”
The reported addition boosts the mineral resource 77 percent – 1.6 billion tons – to a total of 2.66 billion tons. Specifically, the Firetail mine, Kings Valley mine and other places of resource for the company’s Solomon hub have grown to more than 4.5 billion tons. The mineral resource at the Eliwana-Flying Fish Project, another of Fortescue’s, has also been increased by 116 million tons, to a total of 740 million tons.
These discovery successes can be largely attributed to the exploration program that Fortescue founded in 2003. Another drilling program is set to be conducted around the nearby Chichester Range in June and July of this year.
Shares in the current gloomy market leapt 3.4 percent on Tuesday, leading experts to believe that investors may once again be attracted to the stock.
Just a day ago, the company’s shares dropped 4.6 percent to an 8-month low; Fortescue’s share price has fallen 20 percent this year. News that the iron ore price fell below the “psychological floor” of $100 per ton for the first time in two years has driven the dive in prices. The two-year low is attributed to the uncertainty of the Chinese steel output and an increase in supply.
Fortescue will need to look towards the potential strike by tugboat workers at Port Hedland in the coming days. The strike could cut 10 million tons from the miner’s shipments this year, further affecting their stock.
Zimbabwe targets £8.8bn mining industry by 2023
Zimbabwe’s government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas under the Ministry of Mines and Mining Development as part of wider measures to achieve a £8.8 billion mining industry by 2023, according to a senior government minister.
Information Minister Monica Mutsvangwa said other plans include stopping the issuance of special grants in the reserved areas under the Ministry of Mines and Mining Development until the exploration and evaluation is complete and a robust value addition program for diamonds is implemented.
Mutsvangwa was speaking at a post-cabinet media briefing on December 15.
She adds that the issuance and renewal of special grants for energy should also be based on the financial and technical capacity to value add all types of coal, as well as for ideal exploration of Coal Bed Methane.
For renewal of special grants, consideration should take into account the period the Special Grant has been held as well as plans with milestones for value addition of the special grant, Mutsvangwa says. She adds that the Zimbabwean government expects gold to drive the mining sector in order to achieve the ambitious target, with the precious metal expected to contribute approximately £2.96 billion to the overall target.
Mining is one of Zimbabwe’s major contributors to its economy, alongside agriculture, which is the mainstay. The mining sector accounted for more than 60 percent of the country’s foreign currency receipts in 2019, and contributed around 16 percent to national Gross Domestic Product, the Chamber of Mines says.
The country’s mining industry is focused on a diverse range of small to medium mining operations. The most important minerals produced in Zimbabwe include gold, asbestos, chromite, coal and base metals.
Zimbabwe expects its economy to expand by 7.4 percent in 2021 from a projected contraction of 4.5 percent this year, due to the effects of drought and the COVID-19 global pandemic.
When presenting the 2021 National Budget in November this year, Finance and Economic Development Minister, Professor Mthuli Ncube, said that the mining sector is projected to rebound by 11 percent next year after surviving a COVID-19 induced shock that saw the sector contract by 4.7 percent in 2020. In September, mining bans in national parks were introduced, according to news agencies.
He added that the National Budget would allocate £1 billion towards the operations of the ministry for planning, promotion and exploration, data capturing, and automation, among other key mining processes.
Other factors necessary for the achievement of the £8.8 billion target include a stable macroeconomic environment, policy consistency, and availability of long-term capital to fund mining projects along the entire mineral value chain, the minister said.
Stopping "illicit financial flows" from gold smuggling is another key issue to address, according to media reports.