IBO is a joint venture between Fortescue Metals Group subsidiary FMG Magnetite and Formosa Steel IB. The order value of approximately €50 million (US$55.7 million) has been booked in Outotec's December 2019 quarter order intake.

Outotec's scope includes the design and delivery of ten advanced HIGmill grinding mills, as well as installation and commissioning and site services to support the customer with site operation and maintenance. The deliveries will take place in 2020 and 2021.

Outotec stated that when complete, the project will produce 22Mt/y of high grade 67% iron magnetite concentrate product and will deliver an energy efficient operation with globally competitive capital intensity and operating costs.

"After extensive evaluation of available technologies and a comprehensive test work programme in collaboration with Fortescue, Outotec HIGmill technology was selected for this industry-first process circuit due to significant benefits in energy savings," said Kimmo Kontola, head of Outotec's minerals processing business.

"Additionally, considering the amount of grinding power required for this project along with Fortescue's objective to reduce the total number of mills required, the HIGmill, with the world's highest available installed power in a compact footprint, was best suited to meet the customer's requirements for this project."