Fortescue ready to pay off debt Fortescue Metals says it's massive expansion project is all but complete, and the iron ore miner is ready to start paying off its $12 billion debt. The massive debt pile has peaked and the news would all be good from here, chief executive Nev Power said. The world's fourth largest iron ore miner boosted its cash balance to $US2.8 billion by the end of September - with another $US623 million added since. A 7.1 per cent rise in iron ore prices in the three months to the end of September to $US121 a tonne, plus cost cuts, also helped. "The strategy of using debt as the fastest and lowest cost way to fund our expansion has allowed us to grow our business and meet strong market demand for iron ore," Mr Power told reporters. The comments come a year after many were making dire predictions for the company, when iron ore prices plummeted to an unprofitable level below $US100, and Fortescue halted its expansion. The company now says improving average grades and continued demand from China for iron ore and steel position the company to grow its cashflow. Production is expected to peak at 155 million tonnes a year due by the end of March 2014, following an extensive expansion in the Pilbara. A first debt repayment of $140 million will be made next month, and chief financial officer Stephen Pearce forecast early repayments of $1 billion-plus in the next few months alone. Fortescue shipped 25.9 million tonnes of iron ore in the September quarter, up 61 per cent from a year ago and four per cent on the preceding quarter. The death of a worker at its Christmas Creek mine in August and machinery problems had forced delays, it said. Morningstar analyst Mathew Hodge said the current high iron ore prices were extraordinary and not normal, which augurs poorly for Fortescue. "Everybody is happy while the iron ore price is way over $US100, but sub-100 this thing looks like quite a different animal," he told AAP. Fortescue expects shipments in the full year of 127 to 133 million tonnes. Its shares dropped 16 cents, or three per cent, at $5.24.