Fortescue wants to restart talks on Western Australia port

|About: Fortescue Metals Group Ltd (FSUMF)|By:, SA News Editor

Fortescue Metals (FSUMF) says it wants to restart talks on a proposed iron ore export port in the Pilbara region of Western Australia that could allow smaller miners to compete more effectively with giant rivals such as BHP and Rio Tinto (RIO).

Infrastructure in the Pilbara - from which two in every five tons of iron ore shipped globally by sea are sent - is tightly held by the major miners, and Fortescue CEO Nev Power says building a port at Anketell Point would support his company's its plans to develop iron ore reserves in the western corner of the Pilbara, but iron ore prices weakened by oversupply would mean risks for developers.

Power's comments come a day after Baosteel and Aurizon Holdings said they wanted to acquire Aquila Resources, the company spearheading development of the port.