Fortescue Metals, while pointing at the big miners for digging more ore and helping to depress prices, increased its own iron ore shipments by 33% to 165.4 million tonnes in the 2015 financial year.
In percentage terms this is bigger than BHP which yesterday announced that its full year Western Australia iron ore production increased 13% to a record 254 million tonnes.
The pure iron ore player, posting its June 2015 quarter update, says it cut the cost of producing a tonne of ore in the three months by 14% to $US22 a tonne. This is about 35% less than 12 months ago.
Fortescue expects to bring costs down to $US18 a tonne in the 2016 financial year and hold production around 165 million tonnes.
Miners have been rapidly reducing costs and increasing output to make up for a more than 50% fall in global prices of iron ore. Fortescue has targeted another $US1.4 billion in cost savings in 2016.
Fortescue chairman Andrew “Twiggy” Forrest has criticised the bigger miners for increasing volumes, further depressing prices during a slow down in China, the biggest customer for iron ore.
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