Fortescue upgrades Solomon estimate

Fortescue Metals Group Ltd has upgraded the estimate of iron ore at its Solomon Project by 300 million tonnes, allowing the miner to begin development of operations.

The total resource portfolio of the Solomon Project in Western Australia's Pilbara region was increased to 2.7 billion tonnes from 2.4 billion tonnes, Perth-based Fortescue said in a statement on Friday.

Fortescue said the resource upgrade would underwrite stage 1 of a major mining operation at the Solomon Project, with a target production of 60 million tonnes per year.

The required minimum mine life was 20 years of production, Fortescue said.

Exploration began at Solomon in 2007 and a feasibility study began in 2009, with a report likely by the end of 2010.

Shares in Fortescue had gained two cents to $4.92 at 1059 AEDT.