Download - Fortescue Metals Group Ltd

A message
from our
CEO, Nev
Welcome to the latest
issue of Breakthrough.
It’s hard to believe we’re
only four months into the
year given the number of
milestones we’ve already
accomplished.
It’s a big year for all of us as we
power ahead with our expansion to
155 million tonnes a year.
We may be a young company,
but the rapid expansion of our
operations in the Pilbara is one of
the biggest development projects
in the Australian resources sector.
Since the board approved the $US8.4
billion investment in late 2010, the
commitment of all of you to turn
our vision into reality has been
extraordinary.
It isn’t easy, with plenty of challenges
to overcome, including two cyclones
this year. But I’m proud to say that
as construction approaches the half
way mark, T155 remains on budget
and on schedule.
It’s a tremendous effort. But as we
strive to meet many more milestones
this year, let’s not forget the ongoing
commitment of our operations team.
The key to our growth is the world
class infrastructure established
by Fortescue in the Pilbara. Our
operations are now producing iron
ore at a rate of around 55 million
tonnes a year, providing us with the
cashflow to help fund an expansion
that will establish Fortescue as one of
the world’s major mining companies.
2
The strong performance of our
operations team underpinned
Fortescue’s profit for the six months
to December 31 of $US801 million
and enabled the Board to declare a
fully franked interim dividend of 4
cents a share.
Cashflow is a major component of
our funding of T155. But the scale of
the project means we also need to
borrow from overseas debt markets.
I want to take this opportunity
to congratulate the fantastic
performance of our finance team
led by our Chief Financial Officer
Stephen Pearce on their recent $US2
billion bond raising in the US.
Stephen and his team not only
secured us the funds to complete
T155 and acquire related mining
equipment, they provided certainty
for Fortescue as we move into the
second half of our expansion.
The positive response Stephen
and his team received in New
York – the offering was five times
oversubscribed - also reflects the
strength of Fortescue’s reputation in
financial markets.
As I already mentioned, we’ve
endured two cyclones this year,
Heidi in January and Lua last month.
Fortunately, we emerged from Lua
relatively unscathed, but I would like
to applaud the efforts of everyone
Nev presents VTEC trainee Brian
Enoch with his certificate during
a recent graduation celebration at
the Perth office
involved in preparing our people and
our operations for what could have
been a destructive storm.
As we focus on milestones,
our Indigenous Employee and
Engagement Strategy Committee
has achieved some amazing results
this year. I’m proud to say that at
the end of March, Aboriginal people
comprised more than 10 per cent of
Fortescue’s workforce. It’s a number
that is only going to get higher given
the inspiring trainees that continue
to graduate from our VTEC training
programs in Port Hedland and
Roebourne. I attended a graduation
ceremony in Roebourne in late
March and saw the life changing
impact VTEC is having on our new
recruits. It was a fantastic day and
we welcome all of you into the
Fortescue family.
I would also like to congratulate
Danni Bancroft for her People’s
Choice award at the recent Chamber
of Minerals and Energy’s Women in
Resources Awards. Fortescue people
are clearly kicking goals in all parts of
our organisation.
As I said earlier, we’re only four
months into the year and we’re off
to a flying start. Let’s keep up the
outstanding work as we hit all our
milestones in the months ahead.