Sept quarter iron ore price dips for FMG
Fortescue Metals Group says it expects to achieve an iron ore price of more than $US100 per dry tonne during the September quarter, down from an average price of $US130 in the June quarter.
The company says it also expects to ramp up iron ore production to a 55 million tonne per annum (Mtpa) run rate by the June quarter of 2011.
Production and shipments would in the meantime be maintained at about 40Mtpa until a new ore production facility is commissioned at the company’s second mine, Christmas Creek in the Pilbara.
Wet commissioning of this facility is slated for February.
Fortescue’s costs of production were higher during the June quarter at $US32.25 per tonne, up from $US29.43 per tonne in the previous quarter.
The miner currently has $US1.25 billion cash on hand.
Fortescue chief executive Andrew Forrest will present at the Diggers and Dealers mining conference in Kalgoorlie today.
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