plans by the fortescue metals group to increase production from 39 million tonnes to 55 million tonnes through a us$220 million upgrade of the cloud break mine had to be abandoned in october 2009 because of funding difficulties through its chinese investors. instead, fortescue decided to develop its christmas creek mine, at a cost of us$360 million, by building a mine and process plant there and linking it to its existing rail network. christmas creek is scheduled to produce 16 million tonnes of iron ore in its first year of operation. fortescue plans to reach an annual production of 95 million tonnes of iron ore by 2012, downgraded from an earlier target of 120 million.