Sept 1 (Reuters) - Fortescue Metals Group Ltd FMG.AX :
* CONFIRMS UNIT ENTERED INTO DEED OF AGREEMENT WITH PNG GOVERNMENT AND ITS WHOLLY OWNED CORPORATION, KUMUL CONSOLIDATED HOLDINGS
* UNDER DEED, PARTIES WILL INVESTIGATE FEASIBILITY OF POTENTIAL PROJECTS FOR DEVELOPMENT OF PNG'S HYDROPOWER RESOURCES
* DIVIDEND POLICY REMAINS A PAYOUT RATIO OF 50 TO 80 PER CENT OF NET PROFIT AFTER TAX
* INDIVIDUAL PROJECTS TO BE DEVELOPED BY UNIT WITH OWNERSHIP & ROJECT FINANCE SOURCES SEPARATELY SECURED WITHOUT RECOURSE TO FORTESCUE