Australia's Fortescue Metals sees 10% rise in Jan-March iron ore output

Australia's Fortescue Metals Group produced 46.5 million mt of iron ore over January-March, up 10% year on year, the miner said April 28.

"This strong performance is underpinned by the successful delivery and ramp-up of the Eliwana project, and execution of our integrated operations and marketing strategy, resulting in the upgrade to FY22 (July-June) shipment guidance to 185 million mt-188 million mt," Elizabeth Gaines, FMG's chief executive, said. Previously, the guidance ranged over 180 million-185 million mt.

The Eliwana mine began operations in December 2020 and is now producing at an annualized rate of 30 million mt/year.

FMG's iron ore production for the nine months ended March 31 amounted to a record 139.5 million mt, due to "strong operating performance across the supply chain, together with the successful integration of Eliwana.," FMG said.

FMG added that iron ore demand from its biggest customer, China, was affected by a 10.5% year-on-year fall in the country's January-March crude steel production to 243 million mt, on restrictions related to COVID-19, which affected "logistics and steel demand."

But it was optimistic that "policy settings in China will support steel demand and production in CY22."

Meanwhile, FMG raised its project capital estimate for its Iron Bridge Magnetite project at Pilbara to $3.6 billion-$3.8 billion from $3.3 billion-$3.5 billion.

The project, which is expected to deliver 22 million mt/year of high grade 67% Fe magnetite concentrate, will allow FMG to offer a wider product range and increase its production and shipping capacity, it said. Iron Bridge is scheduled to achieve its first production by the end of 2022.