(Reuters) – Fortescue Metals Group raised its full-year iron ore shipments forecast on Thursday, as the company ramps up output at its Eliwana operations in Western Australia.
The higher guidance comes against the backdrop of soaring prices for the steel-making ingredient during the March quarter due to concerns about supply disruptions after Russia’s invasion of Ukraine and hopes of additional stimulus measures in China to help offset the impact of a COVID-19 resurgence. [IRONORE/]
The world’s fourth-largest iron ore miner now expects to ship between 185 million tonnes (mt) and 188 mt of the commodity in fiscal 2022, up from a previous guidance on 180 mt to 185 mt.
The company, run by billionaire Andrew Forrest, said it shipped 46.5 million tonnes (mt) of iron ore in the March quarter, compared with 42.3 mt a year earlier and beating an estimate of 46 mt from UBS.
Bigger rivals BHP Group and Rio Tinto have warned of risks to production from labour shortages and supply chain disruptions exacerbated by the pandemic, sustained high inflation, and a prolonged Russia-Ukraine war.
Fortescue added capital estimate for the Iron Bridge Magnetite project in Western Australia has been revised to $3.6 billion to $3.8 billion, up from a prior estimate of $3.3 billion to $3.5 billion.
(Reporting by Harish Sridharan and Riya Sharma in Bengaluru; Editing by Krishna Chandra Eluri and Sriraj Kalluvila)
