Fortescue Metals: Solomon Upgrade Adds 6% To Total Resources

15th Jul 2010 02:53

SYDNEY (Dow Jones)--Fortescue Metals Group Ltd. (FMG.AU) said Thursday it will upgrade its total iron ore resources by 160 million metric tons after further studies of the prospects around its planned Solomon Hub mining operation. The company said that a first measured resource at the Brockman prospect shows 42 million tons of iron ore. That takes total measured reserves--the most reliable estimate of mining resources--at the Solomon site to 108 million tons. Less-reliable indicated and inferred reserves would reach 753 million tons and 987 million tons, respectively. Fortescue put development of Solomon, 70 kilometer north of Tom Price in Western Australia state's Pilbara region, on hold in May, citing concerns about its profitability under the Australian government's proposed mine tax plans. Those plans have since been watered down but no fresh decision on Solomon has yet been made. Solomon sits close to the Hamersley rail, an iron ore line owned by Rio Tinto Ltd. (RIO.AU) which Fortescue would like to access, but the Australian Federal Court this month ruled that Rio could continue to exclude the smaller miner. The company said it expected completion of a feasibility study for Solomon in last three months of this year. -By David Fickling, Dow Jones Newswires; +61 2 8272 4689; [email protected] (END) Dow Jones Newswires July 14, 2010 21:53 ET (01:53 GMT)