Fortescue gets WA approval to expand iron ore exports

Australian iron ore exporter Fortescue Metals has received approval from the Western Australia (WA) state government to increase its export capacity to 210mn t/yr from 175mn t/yr, which will support its shipment guidance of 175mn-180mn t in the 2019-20 fiscal year to 30 June.

The licence approval includes provisions for 188mn t/yr of hematite ore and 22mn t/yr of magnetite concentrate using Fortescue's existing port infrastructure. The high-grade magnetite product will be produced from the Iron Bridge magnetite mine in WA's Pilbara region, which is due to start production in 2022.

The increase in the licensed capacity of Fortescue's Herb Elliott port from 175mn t/yr to 210mn t/yr is in line with Fortescue's strategy to deliver growth through investment, including the $2.6bn investment in the Iron Bridge project, said Fortescue chief executive Elizabeth Gaines. Herb Elliott is located at Port Hedland, Australia's largest iron ore export facility.

Fortescue exceeded its export guidance of 175mn-177mn t for 2019-20 with shipments of 178.2mn t compared with 167.7mn t in 2018-19.

The company is also developing the 30mn t/yr Eliwana mine and rail project in the Pilbara, with first shipments expected in 2020-21.

By Kevin Morrison