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Fortescue Metals Group achieves record iron ore rate

Editorial
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Fortescue has achieved a record 160 million tonne annualised run rate in June.

Despite the lowered iron ore price, the miner has not slowed down in its production rate, seeing a run rate of 13.3 million tonnes for the month of June 1014 and an overall annualised run rate of 160 million tonnes.

For the quarter its shipments reached 38.7 million tonnes, and an overall shipment of 124.2 million tonnes for FY14.

The miner saw an average price of US$ 106 per dry tonne for the year, generating revenues of around US$11.6 billion from its mined ore, at costs of approximately US$52 per wet metric tonne.

In a similar vein to Atlas Iron, the mine suffered from a decline and market volatility caused by new iron ore supply entering the market.

However "Fortescue expects the iron ore market market to rebalance in the short term as higher cost production leaves the market flattening the global cost curve and stabilising the price".

In better news for the miner its US$ 9.2 billion 155 million tonne per annum ramp up is complete.

Fortescue CEO Nev Power called this latest record an "outstanding end to FY14".

"The accelerated rapid ramp up to a sustained 155 mtpa rate for the June quarter highlights the outstanding achievement and commitment of everyone at FMG," he said.

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