Andrew Forrest's Fortescue Metals is reported to have extended a nod for an $US8.4 billion ($AU8.5 billion) expansion of the company operations at its Pilbara iron ore operations.

"This decision will enable Fortescue to leverage its existing infrastructure and its massive land holding across the Pilbara to exponentially increase product sales within key markets of Asia, Europe and Australia", he was quoted as saying.

The go-ahead highlights the high demand for iron ore across the globe, founder Andrew Forrest posted. It is reported that the group will seek a lending of over $US4 billion.

The widening of its operations aims to hike its production of over 55 million tonnes a year to 155 million tonnes a year, with a target time till June 2014.

The move is reported to be funded by bank or bond-market debt facilities, cash reserves and cash flow from operations.

Presently, the Pilbara iron ore manufacturers are cherishing the boom-period in the prices of above $US150 a tonne for the steel-making raw material.

Iron ore hails to serve as the country's biggest source of earning in the export category. Exports in 2010-11 as expected by ABARE, stands at around $AU47.7 billion.