Photo by: Bloomberg
PERTH (miningweekly.com) – Iron-ore miner Fortescue Metals has reported record shipments for the half-year ended December, and celebrated first ore at its new Eliwana mine, in the Pilbara, during December.
Iron-ore shipments in the December quarter reached 46.4-million tonnes, contributing to a record 90.7-million tonnes in the first half of the year.
C1 costs for the quarter were reported at $12.81/t, in line with the previous quarter.
“Record shipments of 90.7-million tonnes surpassed any half year since Fortescue’s inception, and we are very well placed to meet the sustained strength in demand from our customers,” said CEO Elizabeth Gaines on Thursday.
“Fortescue is continuing to deliver strong results for the 2021 financial year across all key measures of safety, production and cost, and during the quarter the team achieved a key milestone of first ore at our Eliwana mine.”
The $1.25-billion Eliwana mine and rail project consists of a new 30-million-tonne-a-year dry ore processing facility and infrastructure and a 143 km rail line. The development uses the latest technology, autonomous tricks and design efficiency, which Lilleyman said would help Fortescue to maintain its current cost levels.
“In December, we celebrated the significant milestone of the first ore processed and commissioning train at the Eliwana mine. Delivery of this strategically important project in line with schedule at an industry-low capital intensity was a remarkable effort by the Fortescue team considering the impact of Covid-19 restrictions,” said Gaines.
“Across the business, our entire team is achieving excellent operational performance while continuing to manage challenges associated with Covid-19, including borer restrictions. These measures, to protect the health and safety of all of our employees and contractors, enables Fortescue to maintain its strong contribution to the Western Australian and national economies.”
Average revenue during the quarter was $122/t, with Fortescue noting that revenue per tonne increased by 15% on the previous quarter, and more than 13% on the average Platts 62% CFR Index over the same period, reflecting the robust demand for the company’s products.
The company’s Chinese sales entity sold 3-million tonnes of ore from regional ports in China over the second quarter ended December, with sales of 5.8-million tonnes reported in the first half of the year.