Fortescue Metals

Fortescue Metals (ASX:FMG) is undaunted in the face of a possible fall in iron prices as it says it is on track to meet expansion targets.

Chief executive Nev Power said iron ore prices was at its highest during the three months to September, then softened late in the quarter.

Fortescue Metals (ASX:FMG) outgoing chief Andrew Forrest has vented his ire over carbon tax with a warning that the company will launch a High Court challenge if the government green lights the proposal in its current incarnation.

Forrest said that the mining tax was "economic vandalism" and unconstitutional. He said that the legislation favoured the three bigwig miners who can best afford to pay the tax: Rio Tinto, Xstrata and BHP Billiton.

Fortescue Metals (ASX:FMG) incoming chief executive Nev Power is focusing on China for expansion of the company's Pilbara base.

Although Power stressed that the miner would provide ore to China, supporting its economic growth, plans to diversify beyond that country are in the works.

He called South America and Africa "fantastic places" and said that "we would look very carefully to understand the sovereign risk and understand the safety of our people."

Fortescue Metals' (ASX:FMG) chief executive Andrew Forrest steps down. COO Nev Power will take over his role as Forrest becomes chairman at the next board meeting on August 18.

Fortescue Metals (ASX:FMG) will not go through with a planned US$1 billion credit facility because of the credit market slump, but this will not impact plans to step up production capacity. The company announced on Thursday that it has received $475.6 million from a syndicate of banks for a three-year unsecured revolving facility.

WorleyParsons (ASX:WOR) has won a $250 million engineering services contract from iron ore company Fortescue Metals (ASX:FMG). WorleyParsons is ramping up production at Port Hedland where iron ore throughput is to be increased from about 55 million tonnes annually (mtpa) to 155 mtpa.

Fortescue Metals (ASX:FMG), Australia's third biggest iron ore producer, expects 12 million tonnes raise in the present quarter after heavy rains impeded March shipments by 15.8 percent to 8.37 million tonnes. Cash production costs increased to $US 44.96 a tonne while ore prices went up eight percent to $US 162 per dry metric tonne at shipping ports.

Chief executive of Fortescue Metals Group (FMG) Andrew Forrest is holding talks with the executive chairman of Hancock Prospecting Gina Rinehart about sharing the iron ore railway facility of FMG at Western Australia. It is understood that earlier, the Fortescue boss had no plans to allow Hancock to have the access to the railways for its Roy Hill project since Mr. Forrest was planning to keep additional capacity for his Solomon Project.

Fortescue Metals (FMG) was the best performing company listed on the Australian Stock Exchange (ASX) this week (Winner of the Week for week 50 of 2006). The company closed the week at $12.80 moving almost 20 percent on the week's close.