Fortescue Reports Increase in Iron-Ore Shipments, but Lowers Annual Export Expectations
- Wednesday, October 16, 2024
Australia's Fortescue has announced a 6% rise in iron-ore shipments for the quarter, but has adjusted its projections for annual exports from its new Iron Bridge mine due to water pipeline leaks.
Iron-Ore Shipments Show Growth
During the three-month period ending on December 31, Fortescue shipped 48.7 million metric tons of iron ore, including the share of its partners. This marked an increase from the previous quarter's 45.9 million tons, albeit lower than the 49.4 million tons shipped during the same period a year ago.
Impacts of Water Pipeline Leaks
Fortescue has revised its full-year shipment target for the Iron Bridge mine as a result of ongoing leaks in the Canning Basin Raw Water Pipeline. The company now expects annual shipments to range between 2 million and 4 million tons, downgraded from the previous guidance of 5 million tons.
No Impact on Group Production Target
Despite the setbacks at the Iron Bridge mine, Fortescue maintains its group production target for fiscal 2024, with an estimated range of 192 million to 197 million tons.
Efforts to Address the Issue
Fortescue is currently assessing options to improve the performance and mitigate risks associated with the high-pressure section (65 kilometers) of the Raw Water Pipeline where the leaks occurred. While replacing this section is not expected to significantly delay the mine's ramp up, it is estimated to cost the company around $100 million.
Rhiannon Hoyle
All Rights Reserved © 2024
Post a comment