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Fortescue achieves another quarter of record output

18th April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported another quarter of record production at its Christmas Creek operation, in Western Australia, and the start of operations at its Firetail mine.

During the three months to March, Fortescue produced a record 25.3-million tons, up 51% from the previous quarter. Quarterly shipments totalled 20.2-million tons, a 3% increase on the previous quarter and a 60% increase on the previous corresponding period.

Fortescue said on Thursday that the commissioning of the ore processing facility at Solomon’s Firetail mine had now started, with the crushing hub, conveyers and stockyards complete, and early ore being processed. The entire Firetail production facility was expected to quickly ramp up to 20-million tons a year during May this year, increasing Fortescue’s production capacity to 115-million tons a year.

The iron-ore miner was expected to reach its 115-million-ton-a-year run rate by the end of December this year.

The company noted that while the commissioning of the ore processing facility was slightly later than expected, Fortescue maintained its production and shipping guidance for the full 2013 at between 82-million tons and 84-million tons.

Work had also started at the Kings operation at the beginning of the March quarter and civil works and the installation of underground services had progressed well, Fortescue said.

At the end of March, nearly half of the Kings ore processing facility modules were on site.

Meanwhile, cash costs for the March quarter were also down to $43.61/t, compared with the $50.48/t incurred in the previous quarter. Fortescue noted that cost increases and strip ratios decreased during the quarter, while cost savings initiatives continued and operational efficiencies were realised.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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