Home Commodities Fortescue Posts Third Consecutive Year of Record Exports — Commodity Comment

Fortescue Posts Third Consecutive Year of Record Exports — Commodity Comment


By Rhiannon Hoyle

Fortescue Metals Group Ltd. on Thursday reported a rise in iron ore production and mining costs for the year through June. Here are some remarks from its fourth-quarter operational report.

On iron ore production:

“Fortescue’s outstanding operating performance continued in 4Q FY22, with mining, processing, rail and shipping combining to deliver record shipments of 189.0 million [metric] tons in FY22, 4% higher than FY21 and exceeding the top end of guidance of 188.0 million tons. FY22 represents the third consecutive year of record shipments, reflecting strong performance across the entire supply chain and the successful integration of Eliwana which commenced operations in January 2021.”

On markets:

“Chinese crude steel production was 527 million tons in the first half of calendar 2022, a decrease of 6.5% compared to the same period last year. The iron ore price trended lower during the period, impacted by Covid-19 restrictions that disrupted China’s downstream steel demand and a weakening global economic outlook.”

On Iron Bridge project:

“The Iron Bridge Magnetite project will deliver 22 million tons per annum of high grade 67% Fe magnetite concentrate, with first production scheduled for the March 2023 quarter. During the quarter, the project achieved key milestones, including six module ships unloaded at Port Hedland, taking the total to 30 June 2022 to 20 of 21 module ships berthed and unloaded. All critical path items have now been delivered to site and the remaining ship was delivered and unloaded in July 2022.”

On outlook:

“Building on another year of record performance, our guidance for FY23 reflects our ongoing commitment to optimising returns from our integrated operations and marketing strategy, with total shipments in the range of 187-192 million tons. We remain focused on innovation and productivity to maintain our industry leading cost position and deliver strong operational performance.”

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

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