Fortescue approves $1.7bn Eliwana project, WA.

Fortescue Metals has announced board approval for an iron ore mine and rail project in Western Australia.

The Eliwana project, located in the Pilbara region, will include the development of 143 kilometres of rail, a new dry ore processing facility and infrastructure, and is estimated to cost $US1.275 billion ($A1.69 billion).

Chief executive Elizabeth Gains said the Eliwana project will maintain Fortescue’s  low cost status.

“The project allows us to commence the supply of Fortescue Premium product to the market from existing operations in the second half of FY19 with volumes increased as Eliwana ramps up to full production,” Gaines said.

Production is set to commence in late 2020.