WA Mining Jobs could soar with Fortescue on target to produce 155 million tonnes by Dec 2013
Fortescue Metals Group Ltd, the fourth largest iron ore producer in the world, has given investors a strong surge of confidence with a recent upgrading of its debt rating by Standard & Poor (S&P) ““ moving up from negative to stable.
Debt-laden Fortescue was looking a little shaky for some time however under Chief Executive Nev Power, who has adopted a savvy and conservative approach to growth, the company it seems is rebounding with a new found vigor. The company has responded to volatile iron ore prices by reducing its operations that have been draining its cash and by doing so has significantly improved its cash-flow position. S & P have stated they expect Fortescue to recover in the 2014 fiscal year.
Fortescue chases a production target of 155 million tonnes per annnum
Fortescue ramped up construction of its fully integrated production to complete it in record time, which has set industry standards. In the very near future, we expect to see Fortescue truly emerge as an iron-ore world power. As such, WA mining jobs in the Pilbara region are expected to flourish as the company races toward its production target of 155 million tonnes as soon as December 2013.
Five years after its first production, Fortescue will produce iron ore at a staggering rate, cementing its position as the fourth largest sea born iron ore producer in the world. Thought the expansion of the Chichester Hub and the development of the Solomon Mine, Fortescue is on target to reach the production of 155 million tonnes as soon as December 2013 and a flurry of mining jobs in WA (with production expanding), would obviously be a running affect.
Chichester Hub expectation of 95 million tonnes per annum
In September 2012 a major milestone was achieved with the commissioning of the second Christmas Creek ore processing facility near WA mining central of Pilbara, which pushed the mines capacity to 50 million tonnes p.a and the nearby Chichester Hub capacity to 95 million tonnes p.a.
Just 200km away the development at Solomon provides Fortescue with a low cost operation taking advantage of low strip ratios and Fortescue’s existing integrated supply chain. The initial development at Solomon`s mine is well underway contributing 20 million tonnes p.a, lifting production totals to 115 tonnes per annum.
Kings Deposit development at Solomon is set to be completed by the end of 2013
Finally, the 40 million tonne p.a Kings Deposit development at Solomon is set to be completed by the end of 2013, taking the total capacity to the targeted 155 million tonnes p.a.
Fortescue has revealed that up to 13 trains per day each nearly 3kms long will deliver product to the company`s export hub at Port Hedland. Once at Fortescue’s highly automated port facility it is unloaded and stockpiled prior to shipping.
Fortescue has consolidated its position as an alternative reliable supplier of iron to China the world`s largest consumer and emerging SE Asia markets, achieving a milestone in 2012 with the opening or three train unloaders expanding the ports unloader capacity to 180 million tonnes p.a. As the action has heated up in this ever-evolving resource rich area mining jobs in Pilbara, WA are ever-present.
Fortescue remains very confident in China’s commitment to economic growth
Fortescue has stated it remains very confident in China’s commitment to economic growth and expects this will lead to continued growth and demand for steel (meaning more WA mining jobs). They have also the ability to continue advancing and have ensured they can sustainably meet Asia`s growing supply deficit from their ever-expanding Australian iron ore production.
Fortescue is therefore ensuring their company and the Pilbara Region remains the world`s dominant region for a seaborn supply of iron ore.
Round the clock operations have seen the company set new standards across the Pilbara. Cycle times for moving product from mine to port are the shortest of all the major Pilbara operators.
Right now the foremost priority of the company is to concentrate on boosting margins at existing mines rather than major committing to spending on growth projects.
This means rather than start building their fourth iron ore mine in 2013- the Nyidinghu mine (35km south of its Cloudbreak mine), Fortescue will be concentrating on continuing to increase their production volume and ramp up current expansion, with a view of Nyidinghu mine to be operating by 2016.
What This Means for Mining Jobs in WA?
If they stay on the mission to reduce their capital and reach their targeted production of 155 million tonnes by December 2013 – to become the largest producer of iron-ore in Australia, Fortescue will be hiring and expanding their workforce significantly in the near future ““ meaning WA mining jobs will be opening up all the time. Right now current jobs at Fortescue Metals include all types of roles, from Rail Operations Specialists on a 5/2 roster with housing benefits, numerous maintenance technician or surveyor roles on an 8/6 Roster ex Perth and Indigenous Cadetship opportunities. Proudly an Australian founded and run company, Fortescue is a commanding force of the future for iron-ore and offers a continuous flow of mining jobs in WA.
Why a WA Job With Fortescue is a good career move?
- Fortescue have increased their iron ore production volume, streamlined production costs and have produced low capital expenditure forecasts.
- The Pilbara mining company is on track to complete its 155 million tonne target by the end of 2013 and will continue to increase its production in 2014.
- June 2013 quarterly iron ore shipments were reported at 25 million tonnes, a hefty jump of 24 percent increase on the prior quarter.
- Their shipping of 81 million tonnes of iron ore from Port Hedland during the 2012/13 financial year, was up 41 percent on the previous year.
- Standad & Poors recently upgraded Fortescue from being a risk to a stable company also said it would consider raising its rating if the company maintains a disciplined approach to capital management, dividend payments and funding for expansion.
- Record levels of steel production in China were maintained during the quarter with actual June steel output of 64.7mt following a record 67mt in May according to the China Iron & Steel Association.
- January to June 2013 crude steel output was up 7.4 percent to 389.87mt which equates to an annualised rate of 786mt compared to actual production of 717 million tonnes in 2012. Steel prices have improved with high levels of steel production; the current low level of iron ore inventory in the system has resulted in recent iron ore re-stocking.
- “Fortescue Blend”, (their new upgraded iron ore product) will be released shortly. This blended product of iron ore from its various Pilbara mines, fully realises the benefits of the low impurity Chichester and higher iron content Firetail products.
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Reference: WA Mining Jobs | Fortescue Metals gets debt rating upgrade | jobs opportunities in Western Australian mining