Iron ore giant Fortescue Metals has signed a windfall $1.1 billion deal with a leading Taiwanese steel firm which promises to breathe new life into the company's beleagured joint-venture with China's' Baosteel.

The deal brings Taiwan’s Formosa Plastics Group into a partnership with Fortescue’s FMG Iron Bridge joint venture on a project which  will see 1.5 million tonnes of iron ore exported through Port Hedland by as early as 2015 in its initial stage, and a further 9.5 million during its second…