FSUMF - Fortescue hikes Iron Bridge cost estimate for second time this year

Fortescue Metals (FSUMF) raises the cost estimate for its Iron Bridge magnetite project in Western Australia to as much as $3.5B, citing labor shortages, rising materials costs as well as unfavorable foreign currency rates, also causing a six-month delay to first production until the end of next year.The Iron Bridge revision is the second this year, after Fortescue said in February that the project would cost ~$3B, up from an original estimate of $2.6B in 2019.Three senior executives resigned in February after a review of Iron Bridge that followed media reports of a cost blowout of as much as 25%.The company says it still expects the project will deliver 22M metric tons/year of high grade 67% Fe magnetite concentrate product.Fortescue's cost and labor problems follows a warning from [[BHP]] of a "critical skills shortage" of train drivers in the Pilbara region that produces most of Australia's iron ore.Iron ore prices

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Fortescue hikes Iron Bridge cost estimate for second time this year