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Fortescue raises another $70m for iron ore project

<p>Fortescue Metals has raised another $70m in financing for its Pilbara iron ore export project, providing a substantial buffer to budgeted costs past the definitive feasibility study, the company said. </p> <p>Fortescue now has firm orders for 9.5m tonnes of iron ore a year, including a new 1.5m-tonne-a-year ore contract with an international steel mill that will provide $23m of the new funding in the form of a prepayment.</p> <p>The balance of the new funding comes from exercise of options by directors and senior management, and placement of notes with US fund managers. </p> <p>China Railway Engineering Corporation said in August 2004 that it will build and finance a railway line from the Pilbara to Port Hedland. </p> <p>In November, China Harbour Engineering Company agreed to build rail-arrival and port-loading facilities, while China Metallurgical Construction built the mine-site ore processing plant. </p> <p>The two companies will finance the facilities for three years beyond practical completion before Fortescue has to refinance them.</p> <br />