Fortescue, Aquila Studying Joint Ore Port Development

By Jesse Riseborough

June 23 (Bloomberg) -- Fortescue Metals Group Ltd., Australia’s third-largest iron ore exporter, is studying building a port in Western Australia with Aquila Resources Ltd.

The companies may share the cost of building a port at Anketell Point and will examine whether a joint operation will reduce costs, Perth-based Aquila said today in a statement. They will also look at giving other groups access, Aquila said.

Anketell Point has potential to accommodate a port with capacity to ship 350 million metric tons of iron a year, Aquila said. Fortescue, which ships from Australia’s biggest iron ore harbor at Port Hedland in Western Australia, may use Anketell to ship ore from its Solomon project, Aquila said.

Aquila had previously announced plans to develop the A$4.1 billion ($3.2 billion) West Pilbara mine, port and rail project.

Aquila fell 6.8 percent to A$5.25 at the 4:10 p.m. Sydney time close on the Australian Stock Exchange. Fortescue dropped 9.8 percent to A$3.67.

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net