Innovation

Fortescue to cut jobs and defer major projects after iron ore prices drop

Myriam Robin /

Fortescue Metals Group is aiming to save $300 million by cutting jobs and deferring several projects.

In a statement to the Australian Securities Exchange, Fortescue said it had lowered its full-year production and capital expenditure guidance in response to volatile market conditions and uncertainty over future iron ore prices.

Fortescue says until iron ore prices stabilise, it will push back the development of its Kings deposit within the Solomon mining hub and the completion of the fourth berth at the Herb Elliott Port project.

“These measures will result in a slight reduction to the previous FY13 production guidance of 86.5 Mt equity tonnes to a new range of 82Mt to 84Mt including the near term ramp up of Christmas Creek and Solomon Firetail,” the group said.

“As a result of these actions, Fortescue’s capital expenditure guidance for FY 2013 is revised to $US4.6 billion from the company’s previous estimate of $US6.2 billion.”

This article first appeared on LeadingCompany’s sister publication, SmartCompany.

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Myriam Robin

Myriam Robin is a reporter for SmartCompany and its sister site LeadingCompany. She has degrees in economics, international studies and journalism. She likes writing about businesses taking risks and doing new things.

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