Fortescue Metals Ships 15 Million Tons of Iron Ore Exports

Australian mining company Fortescue Metals Group (FMG) (ASX:FMG) exported 15.16 million tons of iron ore for the month of August, smashing the company’s previous record of 13.25 million tons.

The achievement helped FMG reach its ramp-up production capacity target of 155 mtpa after officially opening the Kings Valley iron ore mine in March.

“Since completing our ramp up to 155 million tons earlier this year, Fortescue has concentrated on improving safety, reducing costs and operating more efficiently and this monthly result is evidence of our progress,” Fortecue Metals CEO Nev Power said.

“Everyone at Fortescue is especially proud that our port has broken its record for tons shipped and ships loaded at the same time it had zero recordable safety incidents."

The record-breaking achievement also represents a massive increase at Port Hedland, the export terminal many mining companies in Australia utilize. The port shipped 37.38 million tons of iron ore for August, up 10 million from the previous year of 27.4 million. The boost in shipment reveals a shocking production rate of iron ore despite prices falling to all-time lows.

“For the first time in over a decade, the need to eliminate iron ore supply, rather than incentivize it, is determining prices,” Singapore-based CLSA aid this week. 

At $75 a ton, many analysts, and even mining companies, expect the price for the precious met to drop even further.