Photo by: Bloomberg
PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported record iron-ore shipments of 46.5-million during the three months to June.
“It was a strong finish to 2018 with the team delivering record shipments of 46.5-million tonnes in the quarter to achieve our target of 170-million tonnes for the full year. Importantly, this was delivered while maintaining our focus on cost, which decreased by 7% compared with the March quarter,” Fortescue CEO Elizabeth Gaines said on Thursday
Mining, processing, rail and shipping combined to operate at near record rates during the quarter, with 49.8-million tonnes of ore mined during the quarter, and 44.1-million tonnes of ore processed.
C1 costs for the quarter decreased to $12.17/t, reflecting the continued improvement in efficiency, along with the higher production volumes, Fortescue reported.
“Building on our outstanding operational performance in the quarter, Fortescue has delivered on key strategic initiatives which position us for the next phase of growth while improving safety and productivity, ensuring we remain the lowest cost producer of seaborne iron-ore,” Gaines said.
These strategic initiatives included Fortescue’s approval of the $1.27-billion Eliwana project which will entail a new 30-million-tonne-a-year dry ore processing facility and infrastructure, as well as a 143 km rail line.
Production is expected to start in December 2020, and the mine will introduce a 60% iron-grade product into Fortescue’s portfolio by the second half of 2019.
Fortescue has also taken the decision to convert over 100 trucks to autonomous haulage at its Chichester Hub, with 19 trucks already operational.
Furthermore, the company successfully commissioned the relocatable conveyor at the Cloudbreak operation, and reduced its gross debt and restructured its balance sheet to investment grade terms and conditions during the quarter, lowering borrowing costs by $130-million a year. In addition, the company also continued the development of low-cost growth options through exploration activities.
“Fortescue is in a strong position for 2019 as we continue to focus on the safety, productivity and efficiency of our globally competitive operations to sustainably deliver shareholder value,” Gaines said.
The miner is expected to ship between 165-million and 173-million tonnes in 2019 at cash costs of between $12/t and $13/t.