Solomon resource upgraded to underpin mine development: Fortescue

The Perth-based company said today the total measured, indicated and inferred resource at Solomon, in the Pilbara region of Western Australia, has risen to 2.7 billion tonnes from 2.4bn tonnes previously.

"This resource upgrade underwrites the stage one development of a major mining operation at Solomon with a target production of 60 million tonnes a year," the company said in a statement.

Last week chief executive Andrew Forrect revealved plans to start building the second phase of the Soloman deposists. The second phase will cost $US5.7bn ($6.2bn). The announcement came just four months after he revealved the first phase of the operations that would cost $US3bn-plus.

The Soloman deposits is considered by the company as its "next generation" project, and it was promoted by the miner. Last year its, $US6bn financing deal with China was abandoned and Fortescue was forced to revise its Pilbara expansion plans.

If Fortescue has decided to proceed with Solomon, it will become its third mine.

Exploration began at Solomon in 2007 and a feasibility study commenced in 2009; a report is likely by the end of this year.

Stage one is expected to include $1.2bn for a new port, $850m on rail, $850m for the mine and $700m on the plant.