FMG pulls in the Taiwanese

Fortescue Metals has announced this morning that it’s secured a new investment from Taiwan’s largest company, Formosa Plastics, to expand its Iron Bridge deposit, which is already 12% owned by Baosteel. From the release, Formosa will:

Acquire a 31% interest in the JV for US$123 milion
Fund the first US$527 of capex for Stage One, 1.5 mtpa
Participate in Stage Two to about $350 million for another 9.5 mpta
Purchase up to three mpta at market prices

Not huge bikkies and I don’t know a whole lot about this deposit or the company for that matter but they obviously see better prospects for iron ore and steel than I do!

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.