OREANDA-NEWS. June 8, 2012. KfW IPEX-Bank is extending a loan in the equivalent of EUR 140 million to the Australian mining company, Fortescue Metals Group Limited (Fortescue), to support its significant expansion project. Fortescue, Australia's third-largest iron ore producer is planning to use German machine technology to progressively increase its annual iron ore production capacity from 55 million tonnes to roughly 155 million tonnes . Fortescue signed agreements with two German exporters to expand its existing mobile mining fleet. The Wirtgen Group, based in Windhagen/Rhineland-Palitinate, working in partnership with Fortescue, developed an innovative surface miner tailored to suit Pilbara iron ore deposits. The successful development and application of the surface miner, will see Wirtgen delivering several surface miner to Australia. Surface miner are drivable, high-performance machines used for the removal of rock layers in open-pit mines. The technology, contributing significantly to environmental protection, will be used to efficiently mine iron ore in Fortescue’s Chichester Hub mining area, located in the Pilbara region in the north west of Western Australia. In addition, nine new excavators will be delivered by Caterpillar Global Mining HMS, a manufacturer based in Dortmund. "Our financing supports the German export economy: these mining agreements play a key role for capacity utilisation in the development, production and service areas of the two German suppliers Wirtgen and Caterpillar Global Mining HMS", said Markus Scheer, member of the Management Board of KfW IPEX-Bank, upon closing the deal. The loan, with a term of about nine years, is covered by an export credit guarantee of the Federal Republic and is structured in US dollars.

Fortescue is Australia‘s third largest producer of iron ore and, as the world‘s fourth largest participant in the seaborne iron ore market, is one of the leading international iron ore producers. Its business activities extend from exploration, development and mining to the export of iron ore around the world, in particular to Asia.

Illustrating pictures are available on the website of KfW IPEX-Bank in the press section under „press material“.