MELBOURNE (Standard&Poor's) Dec. 8, 2010--Standard&Poor's Ratings Services said today that it had assigned its 'B' rating to FMG Resources (August 2006) Pty Ltd.'s proposed US144a notes issuance of about US$800 million. FMG Resources (August 2006) Pty Ltd. is the funding arm of Australian iron ore miner Fortescue Metals Group Ltd. (Fortescue; B/Positive/--). The senior-unsecured notes will have a term of seven years and proceeds will be used to expand Fortescue's operations to 155 million tonnes per annum (mtpa) over the next four years. Fortescue is currently expanding its Pilbara mining operations to 55 mtpa, from 40 mtpa, with completion scheduled by mid-2011. The group forecasts that the next stage of the planned expansion to 155 mtpa
