Fortescue Iron Ore Shipments Up 6% On-Quarter; Iron Bridge Output Estimate Cut

By Rhiannon Hoyle

Australia's Fortescue Thursday reported a 6% lift in iron-ore shipments quarter-on-quarter, but cut expectations for annual exports from its new Iron Bridge operation citing leaks in a water pipeline.

The world's fourth biggest producer of iron ore said it shipped 48.7 million metric tons of the steel ingredient in the three months ended Dec. 31, including the share of partners. That was up from 45.9 million tons the quarter immediately prior, although shy of the 49.4 million tons it shipped during the same period a year earlier.

Fortescue said it has downgraded its full-year target for shipments from the Iron Bridge mine after further leaks were detected in the Canning Basin Raw Water Pipeline. It now expects annual shipments of between 2 million and 4 million tons, down from guidance of 5 million tons previously.

The company said the setbacks at Iron Bridge won't impact its group production target, sticking with a range of between 192 million and 197 million tons for fiscal 2024.

"Work is underway to evaluate options to de-risk and improve the performance of the high pressure section (65 kilometers) of the Raw Water Pipeline, where the leaks have occurred," said Fortescue. Replacing that section of pipeline shouldn't materially slow the ramp up of the mine, but is expected to cost Fortescue about $100 million, the company said.

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

(END) Dow Jones Newswires

January 24, 2024 18:17 ET (23:17 GMT)

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