The Fortescue Metals Group Limited (ASX: FMG) share price will be one to watch next week.
This follows the release of a late announcement on Friday by the iron ore giant.
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What did Fortescue announce?
After the market close, Fortescue released an update on the Belinga Iron Ore Project in the Republic of Gabon.
According to the release, the company's 80% owned joint venture company, Ivindo Iron, has signed the exploration convention for the project with the Gabon Government. This follows an agreement between the two parties late last year that granted Fortescue an exclusivity period to study the opportunity to develop the Belinga iron ore deposit.
Clearly it has liked what it saw at the project. So much so, Fortescue expects to spend approximately US$90 million over three years on an exploration works program at the 4,500 square kilometres project.
These activities are expected to immediately commence upon grant of the exploration licences, with the initial focus on exploration works to determine the potential size and grade of the Belinga iron ore deposit and to evaluate logistics solutions.
Fortescue's chief executive officer, Elizabeth Gaines, said:
Fortescue is committed to its strategic pillars of investing in the long-term sustainability of the iron ore business and investing in growth. Consistent with this approach, Fortescue is pursuing global opportunities in iron ore that align with our strategy and expertise.
We welcome the opportunity to assess the Belinga Project, which we believe is potentially one of the world's largest undeveloped, high-grade hematite deposits. We look forward to working with our partner, the Gabon Government and all key stakeholders on this important project as we continue to assess opportunities to optimise growth and returns in our iron ore business.
The Fortescue share price is down 3.5% in 2022.
