PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported record quarterly shipments for the three months to June, with average revenue per tonne also increasing by 30%, while C1 cash costs have been reduced.

“We have delivered record quarterly shipments of 46.6-million tonnes while reducing C1 costs by over 5% to $12.78/t, reinforcing our position as the lowest cost producer,” said Fortescue CEO Elizabeth Gaines on Thursday.

Shipped tonnes in the quarter ended June increased from the 38.3-million tonnes shipped in the previous quarter, with ore mined increasing from 48-million tonnes to 57.6-million tonnes in the same period.

C1 cash costs were down from $13.51/t to $12.78/t.

Meanwhile, Fortescue on Thursday reported that average revenue received during the quarter also increased by 30%, to $92/t, compared with the March quarter revenues of $71/t.

“Strong demand for our 60.1% iron content product West Pilbara Fines continues, and we remain focused on our integrated operation and marketing strategy to optimise product mix to meet the needs of our customers,” Gaines said.

She noted that the miner had recently established a new wholly-owned sales entity in China to support customers through directly supplying from regional Chinese ports, providing customers with an option to purchase smaller volumes in Renminbi.

“This entity will complement our existing contractual seaborne arrangements with our first Renminbi transaction completed in June 2019.”

Gaines noted that the Eliwana and Iron Bridge projects both remained on schedule and within budget, while the miner’s investment in autonomy, relocatable conveyors and other initiatives, such as the $287-million Queens Valley development, would continue to deliver enhanced returns to shareholders.

The $1.27-billion Eliwana mine and rail project will entail a new 30-million-tonne-a-year dry ore processing facility and infrastructure and a 143-km rail line, while the $2.6-billion Iron Bridge magnetite project will produce 22-million tonnes a year once in full operation.

Meanwhile, the conversion to autonomous haulage continued during the quarter, with 59 trucks converted at Chichesters, bringing the total autonomous fleet to 128 at the close of the quarter.

The conversion to a fully autonomous mining operation is progressing as planned, and will be completed by mid-2020.

An autonomous light vehicle trail has also started at Christmas Creek.

Looking ahead, Fortescue has set a shipment guidance of between 170-million tonnes and 175-million tonnes for the 2020 financial year, which will include between 17-million tonnes and 20-million tonnes of West Pilbara fines. C1 cash costs for the financial year are expected to reach between $13.25/t and $13.75/t.