Australia’s Fortescue (ASX: FMG) has pushed back full operations at its $3.9 billion Iron Bridge project to 2028, five years later than initially projected, citing continued technical challenges and the need for design revisions.
Originally slated for full capacity by mid-2023, Iron Bridge is now targeting nameplate production of 22 million tonnes annually by the 2028 financial year.
The world’s fourth-largest iron ore producer began construction in 2019 but has since battled cost overruns, equipment issues and leadership turnover. The project’s chief operating officer, Greg Lilleyman, and two senior executives exited in 2021 amid delays and rising cost estimates.
Iron Bridge plays a central role in Fortescue’s strategy to diversify beyond its medium- to low-grade ore by producing magnetite concentrate, a high-grade product with 67% iron content. This energy-intensive process upgrades lower-quality West Australian ore, allowing the product to fetch premium prices in the global market.
The company cited “premature erosion” in its processing plant, which required replacement of ceramic liners and a redesign of its air-based rock separation mechanism. Production is now expected to reach between 10 and 12 million tonnes by June 2026, as the company continues process optimizations.
Iron Bridge is one of two high-grade products Fortescue has launched in recent years. The other, West Pilbara Fines, debuted in 2018 in response to Chinese demand for cleaner steel production inputs. Fortescue plans to add a third high-grade product later this year from its “green iron” plant at Christmas Creek.
Analysts warn that Australia, the world’s top iron ore exporter, risks losing up to half its sector revenue unless it accelerates green iron production. A report by think tank Climate Energy Finance in November flagged rising global competition, as other nations pivot to steelmaking powered by renewable energy.
Leadership changes
Fortescue also revealed further executive changes. Energy chief Mark Hutchinson, 65, will step down but remain as a senior adviser. Chief operating officer Shelley Robertson will also retire. Agustin Pichot, a former captain of Argentina’s national rugby team, will lead the company’s growth and energy division, taking charge of its green energy push.
The leadership shake-up came barely an hour after Rio Tinto (ASX, LON: RIO) disclosed that its chief executive, Jakob Stausholm, would leave the company later this year. No additional details were provided.
