http://au.news.yahoo.com/latest/a/-/latest/18115521/fmg-increases-production-by-...Iron ore producer Fortescue Metals Group says it increased its production by 41 per cent last year.FMG says it shipped almost 81 million tonnes of iron ore in the 12 months to the end of June, although its fourth quarter shipments slightly missed analysts' estimates.
It has maintained its full-year guidance for next year of between 127 million and 133 million tonnes.
The company says the construction phase of its business is almost complete and it is set to focus on production this year.
FMG also says it is confident about continuing demand for iron ore from China.
Chief executive Nev Power says he thinks the iron ore price will trade close to its current levels of $US130 a tonne in the months ahead.
"I'm sure that we're going to see some volatility in the iron ore price, that's inevitable, particularly with the stocking and destocking cycle that we see at ports and mills and through customers and traders," he said.
"But if you look at the fundamental supply demand balance, we don't see any major change."
Mr Power says the company has reduced production costs thanks to an efficiency drive and the falling Australian dollar.
"Certainly the Australian dollar, Australian-US exchange rate, is assisting us," he said.
"I would say that it's been unrealistically high and we're starting to see it come back to more realistic levels."
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Labor says mining boom gone - but FMG lift 41% (Read 272 times)
