Fortescue Metals Group says 380 jobs have been impacted as its review of the Iron Bridge magnetite project in the Pilbara continues.
The technically complex magnetite project was originally slated to cost US$2.6 billion (AUD$3.39 billion) but last month the miner revealed it had blown out by US$400 million (AUD$522 million) thanks to the strength of the Australian dollar, access to skills and “other market factors”.
The Iron Bridge project has been hit with a US$400 million cost blowout.Credit:Quentin Jones
Works have slowed down on the project as it completes a more detailed review due mid-May and The Australian reported that some contracts have been halted.
FMG chief executive Elizabeth Gaines said works on site continued on ‘critical path’ items, including engineering, off-site fabrication, procurement activities and site-based civil works.
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“We are drawing on the innovative and technical expertise of the whole Fortescue team as we undertake this comprehensive project assessment, which includes a review of our contractor strategy and selection,” she said.
She said about 380 contractor jobs were being impacted while they completed the review but the company was working closely with contractors to support redeployment to other Fortescue sites where possible.
After announcing the cost blowout Fortescue revealed its chief operating officer Greg Lilleyman, Iron Bridge director Manie McDonald and director of projects Don Hyma would leave the company.
