Fortescue quiet on spin-off

July 3, 2008

July 3rd (Business Spectator) – Fortescue Metals Group Ltd has not confirmed whether it is considering a spin-off of its iron ore assets to meet its expansion targets, according to the Australian Financial Review newspaper.

The paper reported the group’s planned iron ore expansion was being restricted in terms of pace and scale due to the restrictive terms of its $2.7 billion bond raising, which was struck in August 2006.

“We have an enormously strong market, we have demonstrated our ability to construct a project and to get it up in record time at the cheapest going capital dollars and we’re determined to stay in there with the market as strong as it is,” said executive director Graeme Rowley.

“Therefore, in the interests of our shareholders, we have to be examining all the potential options that relate to expansion and as soon as we’ve settled on one, on the circumstances that are appropriate at that time, we’ll obviously make an announcement,” said Mr Rowley.

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