Fortescue production surges
Iron ore giant Fortescue recorded a 41 per cent jump in production last financial year.
Fortescue says it shipped almost 81 million tonnes of iron ore during the 2012/13 financial year, up 41 per cent on the previous year.
The company shipped 25 million tonnes in the June quarter, up 24 per cent compared to the previous three-month period.
Fortescue Metals Group said it recieved an average sale price of $US113 a tonne during the June quarter, thanks to continuing demand from China.
It said steel production in China remained around record levels, with 64.7 million tonnes produced there in June.
“These high levels of steel production, improving steel prices and the current low level of iron ore inventory in the system have resulted in recent iron ore re-stocking,” the company said in a statement to the stock exchange today.
The company said it did not pay any Mineral Resources Rent Tax during the financial year.
Fortescue said it expected to produce and ship between 127 million tonnes and 133 million tonnes of iron ore in the 2013/14 financial year.
It also said it was still in negotiations over the possible sale of a stake in its Pilbara rail infrastructure.
Stay informed, daily
“These negotiations continue and a sale of a minority interest will only be executed on the basis that Fortescue receive full value, reflecting the long-term worth of these world class infrastructure assets and efficiency of the integrated logistics chain,” the company said.
Fortescue said it had reduced production costs through lower strip ratios, costs savings initiatives and operational efficiencies.
Shares in Fortescue fell 1.5 cents to $3.66 following the release of the quarterly production report.
