PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported a 4% increase in iron-ore shipments for the quarter ended September, compared with the previous corresponding period.

The company shipped 47.5-million tonnes of ore in the first quarter of the 2023 financial year, which was down 4% on the June quarter shipments, with C1 cost of $17.69/t up 3% on the June quarter, and 16% higher than the previous corresponding quarter, reflecting price escalation of key input costs, including diesel and labour rates, partly offset by a lower Australian/US dollar exchange rate.

The miner reported average revenue of $87/t for the quarter, realising 85% of the average Platts 62% CFR Index.

The company’s cash balance at the end of the quarter stood at $3.3-billion, compared with the $5.2-billion at the end of June.

Fortescue told shareholders on Thursday that the company continued to make significant progress to decarbonise, with $6.2-billion in capital investment planned by 2030 to eliminate fossil fuel risk and reduce operating costs by $818-million a year.

Additionally, cumulative operating cost savings of $3-billion are estimated by 2030.

“We are establishing the building blocks of a new, global renewable energy value chain spanning technology, manufacturing, green energy generation and distribution which will deliver significant returns to our shareholders,” executive chairperson Andrew Forrest said.

“Last month at the United Nations General Assembly, Fortescue announced it would step beyond fossil fuels and lead heavy industry to achieve real zero emissions (Scope 1 and 2) across our iron-ore operations by 2030. We will save an estimated $3-billion by 2030 as a result, rising to annual savings of $818-million once fully implemented. Our roadmap outlines the technology, timetable, strategy and costings required to decarbonise profitably, avoid financial, commercial, environmental and social risk, and future-proof the business. We urge other emitters like us to follow.

“Business as usual is over. There has been a historic underinvestment in clean energy globally. The maintenance and subsidy of fossil fuels has a detrimental climatic impact and prolongs their prolific use. We are making the choice to turn off fossil fuels to provide stronger outcomes for our shareholders and better outcomes for the planet. The acceleration of the energy transition for the resources industry requires subsidies for green energy globally. This will be a core message we will take to COP27 next month to help enable other companies to join us,” said Forrest.

“Against this backdrop of a strong performance for the first quarter, we are well positioned to meet our guidance, execute on our strategy and ensure all our stakeholders continue to benefit from Fortescue’s success.”

Fortescue is predicting iron-ore shipments of between 187-million and 192-million for the 2023 financial year, including 1-million tonnes from the Iron Bridge project, which is under construction.

C1 costs for the full year are estimated at between $18/t and $18.75/t, with capital expenditure targeted at between $2.7-billion and $3.1-billion. The company’s energy arm, Fortescue Future Industries, is expected to spend a further $500-million to $600-million on operating costs and $230-million on capital expenditure.