Forrest’s Fortescue sets up Gabon ‘taskforce’ for slow-to-roll Belinga project as shipments crack record
Andrew Forrest’s Fortescue has stuck to guidance for the year despite a spike in operating costs during the quarter, and broken a previous record for first-half iron ore shipments.
The WA iron ore miner shipped 50.5 million tonnes over the December quarter, lifting total shipments halfway through the financial year to 100.2mt, a 3 per cent increase on the same time last year.
However unit costs rose 5 per cent on the prior quarter to US$19.10 per wet metric tonne, which Fortescue pinned on turning through lower grade ore and higher diesel costs. Nevertheless, the miner held full-year guidance of between $US17.50 and $US18.50/wmt.
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By continuing you agree to our Terms and Privacy Policy.There was also word on Fortescue’s plans to grow its iron ore presence beyond the Pilbara in the Thursday update, with a “presidential taskforce” established to try and get things moving on the Belinga project in Gabon.
“We’ve also continued to progress studies into the Belinga Iron Ore Project in Gabon, establishing a Presidential Taskforce to streamline the planning and delivery of an integrated mine, rail and port solution,” Fortescue growth and energy chief, Gus Pichot said.
There are now four reverse circulation drill rigs and one diamond core rig operating on site.
First ore from Belinga was shipped in 2023 but progress to establish firm ramp-up and plans going forward have been slow, in-part due after a military coup toppled the country’s ruling family.
A tonne of Fortescue’s Pilbara hematite iron ore was fetching $US93/dry metric tonne (dmt), while product from the higher-grade magnetite from the Iron Bridge operations went for $US122/dmt for the quarter.
The prices Australian iron ore miners take for their product from China has come into focus, as BHP negotiates new terms with customers in China.
Rio Tinto moved away from the London-based Platts pricing index to a new index overseen by China’s main iron ore buyer — China Mineral Resources Group.
Fortescue cemented advances into copper over the quarter.
In December, it moved on Peru-focused copper play Alta Copper, paying $152 million in cash for the shares it didn’t already own in the business. Rising prices have driven a buying frenzy for the red metal among listed mining companies.
