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Mining in WA

 

Mining in WA - Fortescue Metals GroupMining in WA is still proving to be one of the biggest employers in Australia.

If you’re looking for jobs in WA, especially a mine job, start your search with Fortescue Metals Group.


The Pilbara iron ore mining company has provided employment in WA for local, interstate and indigenous mine workers.

Fortescue operates 4 iron ore mining operations in the remote Pilbara region of North West WA. This mammoth mining project covers a land mass that is approximately the size of France – an area approximately 670,000 km.

Fortescue Metals Group Pilbara Iron Ore Mining Operations

  • Firetail
  • Solomon
  • Kings
  • Christmas Creek

Fortescue and Rio Tinto plans an iron ore expansion plan in the Pilbara

Fortescue Metals Group have announced they will keep building their Pilbara iron ore operations even though there is a slight backlash by many investors and a focus on returning greater dividends to shareholders. Andrew Forrest, who owns 33 per cent of Fortescue said it would resume dividends as soon as it was “responsible” to do so. Meaning, as soon as the company was realising steady development grown and cashflow, dividends would be distributed to investors.

Sam Walsh, Rio’s chief executive was quoted as saying that their board was likely to approve $US4.3 billion of spending on iron ore mine expansions. This heavy investment in mining in WA operations is required to achieve new levels of output, which is expected to be 360 million tonnes by 2015. This peak production would mark the end of the company’s construction push and into the productivity phase.

Fortescue’s Nev Power has also outlined plans to bolster iron ore production by 10 per cent to 170 mtpa at a minimal investment cost after its $US9 billion expansion plan is finalised at the end of this year.

The next push for Fortescue and many other Pilbara iron ore miners is the  “efficiency” phase. This is a time where mining automation and operational streamlining takes a focus. Automation at Fortescue includes automatic haul trucks and remote controlled trains that could lift production targets by a further 5 to 10 per cent. The next phase beyond 155 mtpa as optimising and productivity increases kick in.  Given the investment, Fortescue are looking to achieve greater output without the need for further capital investment.

Fortescue’s C1 cost is expected to range between US$45 and US$50/wmt for FY13. Once fully operational, C1 costs at Firetail and Kings are expected to be in the range of US$25 to US$30/wet metric tonne. The  benefits of adding these low cost tonnes is expected to greatly reduce Fortescue’s overall cost of iron ore production to around US$38 to US$40/wmt at a fully operational 155mtpa run rate.

$US250 million fifth berth at Port Hedland

Fortescue is looking for construction approval of its $US250 million fifth berth at Port Hedland in the 2014 financial. This additional berth is expected to boost its iron ore export capacity to around 180 mtpa.

iMINCO Mining Information Watch the latest Fortescue video called Forging Ahead.

Does Fortescue look like a good opportunity to find FIFO jobs in the Pilbara mines?

Fortescue recently released their March 2013 financial report. This is one of the first places you should look for clues as to where the mining careers are. As Fortescue is listed on the Australian Stock Exchange, you will always get a clear and transparent overview of their current position in the market. A lot of people find mining job opportunities just by reading these reports. An overview of this latest report shows:

  • Significant reduction in operating costs to US$43.61 per wet metric tonne of iron ore. With the price of iron ore hovering around $130-$140 a metric tonne, the profit margins remain favourable which is a good sign of stability for Fortescue jobs.
  • Strong operating cashflows maintaining March net cash balance at US$1.5bn. A good sign that there is a constant supply of money flowing through the company. When there is good cashflow, there is opportunity for more WA jobs in with the miner to be created – owing to increased investment and development of new mines and assets.
  • Commissioning of the 20mtpa Pilbara Firetail ore processing facility (OPF) has started, allowing an increase of Fortescue’s production capacity to 115 million tonnes per annum (mtpa).
  • Average realised Cost and Freight (CFR) sales price of US$131 per dry metric tonne (dmt), up from US$111/dmt in the prior quarter reflecting the continued strength in the iron ore price. When there is an upward trend in iron ore commodity prices, it’s good news for mining employment in the Pilbara.
  • Iron ore shipments increased 3% on the previous quarter, with a 60% increase on the previous period in 2012. With productivity up, it s a good sign Fortescue have solved a lot of their previous infrastructure issues and are now focussed on delivering solid production results. To maintain these results, Fortescue need committed mine workers who can contribute to the overall growth of the business. There has never been a better opportunity to get into a mining position if you are committed to a long-term career in open-cut mining.
  • The Firetail and Christmas Creek mining operations produced record iron ore extraction results of 25.3wmt being mined. This was 51 per cent higher than the previous quarter.
  • The Fortescue rail network (Hamersley lines) continues to expand adding even more efficiencies to their mine-to-port operations. They are currently running 11 operational trains, each comprising of 2 diesel locomotives pulling 240 iron ore freight cars at a length of almost 3 kilometres long. Before the end of 2013, 2 more full locomotive and freight car combinations are expected to be delivered.  That’s a rolling stock count of 26 locomotives and a staggering 3120 iron ore cars.

Fortescue iron ore exploration plans

The company is still actively searching for new iron ore deposits in the Chichester and Solomon hubs, focussing on Eliwana in both Brockman Iron Formation and Marra Mamba Iron Formation. The core samples look promising, revealing further opportunity for iron ore mining in the region. A second deposit at Boolgeeda to the southwest of Eliwana has also been identified as a possible source of good quality iron ore.

Indigenous Mining Jobs WA

Fortescue remains committed to providing training, employment and business development opportunities to indigenous Australians. At the end of March 2013, indigenous employees made up 11.3% (418 employees) of Fortescue’s total workforce. There are an extra 350 people employed by its contracting partners.To date, over 80 contracts and sub-contracts totalling A$630m have been awarded to small and large Aboriginal owned businesses with approximately A$700m of mining and camp service contracts having been committed and likely to be awarded before the end of 2013.

 

iMINCO Mining Information Training Recruitment

Fortescue Jobs in WA

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