Australia’s FMG launches new medium grade iron ore fines product

1-Oct-2018

Australia’s third-largest iron ore miner Fortescue Metals Group Thursday launched West Pilbara Fines, a new 60.1%-Fe low alumina iron ore fines product, at a China Iron & Steel Association conference in Dalian.

The first shipment of West Pilbara Fines is scheduled for December.

The expected specifications of the Western Pilbara Fines are 60.1%-fe, 2.3-2.5% alumina, 4.3-4.5% silica and 0.08-0.09% phosphorus.

Initially produced by blending iron ore fines from the Chichester and Solomon mining areas in the Pilbara region of Western Australia, fines from the Eliwana mine will be added as a key production source after its completion in 2021.

The production capacity for West Pilbara Fines is expected to gradually ramp up to 40 million mt/year after the completion of the Eliwana mine and rail infrastructure projects, from current estimates of 5 million-10 million mt in fiscal 2018-19 (July-June).

The launch of a new medium grade iron ore fines product will enable FMG to capitalize on the increasing demand for medium grade Australian fines, market sources said.

S&P Global Platts assessed the 62%-Fe iron ore index at $69.75/dry mt CFR North China Thursday and the 65%-Fe index at $96.75/dmt, both down 5 cents/dmt from the day before.

Market sources are expecting the current $27/dmt spread between the 62%-Fe and 65%-Fe indexes to narrow further going forward amid a gradual shift in demand from high grade to medium grade fines with a lower alumina content.

Source: PLATTS