Fortescue Metals Group will sign an agreement with a Chinese engineering group in hopes to increase iron ore productions at its Chichester Hub project mine in Western Australia.

In a statement released by the company on Monday, the iron ore producer would sign an agreement with China Gezhouba Group Company (CGGC) today.

“The agreement commits both parties to negotiate and define an engineering and procurement role for CGGC, which would convert to a formal appointment, if mutually acceptable terms can be agreed,” Fortescue said.

The company explained it has initial plans to boost its iron ore production to 55 million tonnes per annum (mtpa) at Chichester. The inial planning is expected to be completed during the March quarter of 2011.

“Planning for the next expansion phase up to 95 mtpa is also advanced and the involvement of CGGC will bring benefits in areas such as procurement, engineering, and overall project management oversight,” the company said through a letter with the Australian Securities Exchange.

It was also revealed that CGGC will collaborate with China's export credit agencies to gain entry to competitively priced credit in the future if Fortescue has plans to pursue it in the future.

Fortescue Metals Group is an Australian iron ore mining company that operates in the Pilbara region of Western Australia. The company is headed by entrepreneur Andrew Forrest.

China Gezhouba Group Company provides electricity, water management, and engineering services.