‘Highest ever’: Fortescue cracks six-month shipment record and denies African adventure is finished

Fortescue has stuck to full-year targets after cranking out record half-year shipments from the Pilbara and finding some momentum at the long-troubled Iron Bridge operation.

The Andrew Forrest-chaired miner shipped out 49.4 million tonnes in the December quarter lifting overall exports halfway through the financial year to 97.1Mt, a record six month performance for the business.

Fortescue also managed to bring down production costs, which fell by 10 per cent for the three months to US$18.24 per wet metric tonne.

Shipments from the troubled Iron Bridge were 1.2mt taking the higher-grade magnetite operation to 3.2mt of output for the half.

After serious cost blowouts and reductions to ramp up plans, Fortescue is chasing down at least 5mt and up to 9mt from the operation for the full year.

A tonne of ore from that operation fetched US$116.85/dmt on average, compared to a tonne of hematite at US$87.40/dmt.

Guidance for overall ore tonnes for the year — including Iron Bridge — has been held at between 190-200Mt, as has cost guidance of between $US18.50 to $US19.75/wmt.

“It’s been an outstanding operating performance in the quarter, with iron ore shipments of 49.4 million tonnes contributing to our highest ever half year shipments of 97.1 million tonnes,” Fortescue Metals chief executive officer, Dino Otranto said.

“We achieved this while maintaining our focus on safety, as well as driving costs lower.”

The group awarded a contract to XCMG as part of a mission to run its diesel fleet in the Pilbara on non-fossil fuel sources.

Fortescue has other projects on the boil, including the Belinga project in Gabon, and a ‘green metal’ project at Christmas Creek that is due to start production this year.

Rumours have been swirling in the market that Fortescue is abandoning Belinga after finding Gabon too tough to operate in.

Fortescue shipped maiden ore from Belinga in late 2023, but has been relatively quiet on the project’s progress since.

Mr Otranto was asked by Bank of America analyst James Redern if Fortescue was finishing up at Gabon.

“Categorically, no, the operations are not being wound up,” Mr Otranto said in response.

“We got the first shipment out within within months after signing the mining convention, but it was always our intent not to continue that operation because it was a high cost trucking operation.

“We’re roughly halfway through our three year study period, so we we are doing a lot of drilling in the ore body . . . which continues to meet our expectations on the grade and the quantity available.”

On the energy side of the business Fortescue said it was progressing feasibility studies and planning approvals for proposed green hydrogen projects in Norway and Brazil.

The division is also reviewing rules released regarding ‘clean hydrogen production tax credits’ released by the United States Government in January, and what it might mean for US projects.

Fortescue plans to build another green hydrogen project in Arizona. The company now has to navigate a new US President who appears to be less keen than his predecessor about green energy projects.

“Obviously we’re monitoring that situation,” Mr Otranto said.

“What we what we have a firm belief on is, is that this is a pro economic government.”