Photo by: Bloomberg
PERTH (miningweekly.com) – Severe weather conditions and planned maintenance has seen iron-ore miner Fortescue Metals decrease production during the three months to March.
The miner on Tuesday reported that 41.6-million tonnes of ore were mined during the quarter, compared with the 47.5-million tonnes in the previous quarter. A total of 38.7-million tonnes of ore was shipped, compared with the 40.5-million tonnes in the December quarter.
“Our team has continued to deliver by maintaining their focus on safety, production and costs. Our strategic goals of investing in the core long term sustainability of the business, while pursuing low-cost growth options are firmly in our sights as we continue to generate strong margins, leveraging Fortescue’s position as the lowest end of the global cost curve,” said CEO Elizabeth Gaines.
During the quarter under review, C1 cash costs increased by 9%, from $12.08/t to $13.14/t, reflecting lower production volumes, a higher Australian dollar, as well as higher fuel prices.
Full-year C1 costs are expected to range between $12/t and $12.50/t, with Fortescue expected to ship some 170-million tonnes of ore in the full year.
Gaines has meanwhile said that the continued roll-out of the autonomous haulage fleet at the Chichester Hub operation is expected to contribute to further productivity and efficiency improvements across the business, along with the relocatable conveyor at the Cloudbreak operation.