Iron ore shipments
Average revenue per dry metric tonne (dmt)
Fortescue Metals Chief Executive Officer, Fiona Hick, said “The Fortescue team has delivered
outstanding results for the June quarter, with iron ore shipments of 48.9 million tonnes, contributing
to our highest ever annual shipments of 192 million tonnes, achieving the top end of shipments
guidance. We did this while maintaining our strong focus on safety, which is a core Value, with a
TRIFR of 1.8 for the year.
“Fortescue recently celebrated several milestones, including first magnetite concentrate production from Iron Bridge. Iron Bridge is a large and complex project, and its successful construction is a true demonstration of our Values. I want to thank everyone who has been involved. It signifies Fortescue’s entry into the high grade iron ore market segment which enables us to provide our customers with an enhanced product offering.
“The Belinga Iron Ore Project in Gabon continues to make strong progress with the first ore loaded on train and delivered to port during the quarter, less than six months from when the Mining Convention was signed. Geological mapping and sampling programs continue to show that this Project has the potential to be significant scale and high iron grade, and we have a major exploration drilling campaign underway.
“Building on another year of record performance, our guidance for FY24 is for total shipments in the range of 192 - 197 million tonnes. Our hematite operations are performing strongly and we are focused on delivering growth through the safe and efficient ramp up of Iron Bridge, unlocking the potential of Belinga and decarbonising our iron ore operations. We will continue to invest in green metals, green energy and green technologies, supported by our strong balance sheet and disciplined capital allocation.”
|FY23||FY22||Var (%)||Q4 FY23||Vs Q3 FY23 (%)||Vs Q4 FY22 (%)|
|C1 cost (US$/wmt)||17.54||15.91||10||17.57||(1)||2|
Pilbara hematite operations. Volume references are based on wet metric tonnes (wmt). Product is shipped with 8-9 per cent moisture.
|Product summary (m wmt)||FY23||(%)||FY22||(%)||Q4 FY23||(%)|
|West Pilbara Fines||16.4||9||15.0||8||4.4||9|
|Super Special Fines||69.3||36||70.0||37||17.5||36|
Timing differences may occur between shipments and sales as FMG Trading holds inventory at Chinese ports.
Iron Bridge commenced production of high grade magnetite concentrate during the quarter, and the first concentrate was loaded on ship at Port Hedland on 24 July 2023.
Commissioning activities are progressing well, while managing disruptions that included Tropical Cyclone Ilsa and a defect in the process water pond that required remedial works. All concentrate produced to date has been at or above 67% Fe specification.
The process water pond remedial work disrupted commissioning of the Wet Plant for six weeks and has now been completed. Commissioning activities continued in the dry circuit, pipelines, and concentrate handling facility at Port Hedland.
Reflecting the updated commissioning schedule, the Project is anticipated to transition to operational production in mid-August 2023. • In line with the schedule, the completion of construction of Dry Circuit B remains on track for September 2023. •
FY24 shipments are anticipated at approximately 7mt (100 per cent basis) and the ramp up to full production capacity of 22mt per annum is expected within 24 months.
Iron Bridge’s FY24 operating expenditure excluding shipping and royalties is anticipated to be approximately US$400 million (Fortescue’s share).
Iron Bridge is an Unincorporated Joint Venture between FMG Magnetite Pty Ltd (69 per cent) and Formosa Steel IB Pty Ltd (31 per cent).
Total exploration and studies capital expenditure in Q4 FY23 was US$52 million and in FY23 was US$233 million.
Iron ore exploration in the Pilbara included resource definition drilling in the Eastern Hamersley with a focus on Nyidinghu and Mindy South, along with the regional exploration programs Pilbara wide.
Activity at the Belinga Iron Ore Project in Gabon focused on the drilling program which began in the quarter where both diamond and reverse circulation drilling programs are underway.
ther exploration activity in Australia focused on the copper project portfolio, which included project generation activities in South Australia, where geophysical data processing and modelling is being finalised for drill testing of targets in Q2 FY24.
International exploration included drilling programs across project areas in Argentina, Chile, Brazil and Kazakhstan.
Fortescue Energy is Fortescue’s global green energy division and comprises Fortescue Future Industries and WAE Technologies.
The first battery electric haul truck prototype was delivered to the Christmas Creek site for testing in Pilbara operating conditions.
Expansion of WAE’s battery and electric power train production operations in the United Kingdom with a facility in Oxfordshire to focus on the production of a wide range of zeroemission products for the off-road sector, including trucks and trains.
Progressed a study with Channel Infrastructure into the production of synthetic Sustainable Aviation Fuel (eSAF) at Marsden Point, New Zealand. If feasible, will be one of the first at-scale projects to produce eSAF – an alternate to biomass feedstock-based fuels.
In July 2023, Holmaneset green hydrogen and green ammonia project in Norway was selected by the European Commission as a beneficiary of its Clean Technology Fund. Details to be finalised with the European Climate, Infrastructure and Environment Executive Agency.
In July 2023, acquired the Phoenix Hydrogen Hub in the United States. Phase one of the Project proposes an 80MW electrolyser and liquefaction facility, capable of producing up to 12,000 tonnes per annum of liquefied green hydrogen.
FFI’s FY23 preliminary unaudited operating expenditure was approximately US$440 million, exclusive of expenditure incurred on behalf of Fortescue Metals for decarbonisation.