Fortsecue Metal Group

Fortsecue Metal Group is an Australian rapid growing iron ore Company in the past decade. FMG's goal is to become a new force in iron ore. FMG takes a well control in operating and productivity cost which gives a great competition to their rivals. FMG has developed rapidly. As founded in 2003, it uses two years to establish a perfect infrastructure in Pilbara which is the region in Australia, has the largest exploration territory.

However, FMG is facing great competition and challenges. In domestic market, Rio Tinto and BHP Billiton are not only the Australia's largest iron ore companies but also the largest ones in worldwide who take advantages on both production and quality.

Through analyzing the supply and demand factors, FMG has a high dependence on China for both of its exports and financing. Moreover, FMG is required to concern the growing environmental problems. As the environmental protection becomes a global issue, FMG needs to reduce the emission and control the environmental cost. Therefore, FMG has a great potential to be one of the largest iron ore companies in the world while it faces a variety of challenges in its future.

AU iron industry

In 2009, the local iron ore mining industry has $40 billion production. The iron exports of Australia increased 6% to 350 million tons in 2010. This stable increase is caused by both internal and external factors.

The expansion of Fortsecue Metal Group's Pilbara operation and the joint venture between Rio Tinto and BHP Billiton greatly improve Australia's iron ore productivity. According to the Reserve Bank of Australia's quarterly review of the economy, iron ore prices are projected to rise, emerging from the economic downturn with an increase in price by 10 to 20 per cent (Sean Farrell and Robert & McDermott 2010).

Iron ore resources are scare in the world wide; developing countries like China and India have a high demand in iron ore. The Australian iron ore companies have a strong supplier's power. For example, Vale of Brazil, Rio Tinto and BHP Billiton are the world's largest iron companies which have more than 49.3% of world's iron productions.

 Opportunities:

Fortsecue Metal Group is a new entrant in this industry. The iron ore scale is in a rapid development path from 1999 to 2008. FMG was founded in 2003 which directly suited this growing path and becomes the third largest iron ore enterprise in Australia. However, in 2008 and 2009, the production of global steel declined, and the demand for iron ore also fell. While the world's iron ore production reached 17.2 million tons in 2008, which had an increase of 5.6% than 2007. (<http://www.scribd.com/doc/40469126/FMG-External-Analysis-PESTEL>)

FMG has great opportunities to expand its business in worldwide. It owns a significant tenement in Pilbara which guarantees