Plant prob­lems de­lay Roy Hill tar­get

Pilbara News - - News - Nick Evans

Roy Hill chief ex­ec­u­tive Barry Fitzger­ald says the Gina Rine­hart-con­trolled com­pany is un­likely to hit an “ag­gres­sive” ex­port tar­get of 55 mil­lion tonnes a year by De­cem­ber.

Roy Hill had planned a twoyear ramp-up to its 55mtpa run rate but pulled that for­ward to an 11-month pro­gram as the ironore price be­gan to fall last year.

Mr Fitzger­ald con­firmed yes­ter­day the com­pany was un­likely to reach that peak rate by the end of the year.

“We set an ag­gres­sive tar­get to try to get there by the end of this year which was 11 months from the first of Fe­bru­ary,” he said.

“We prob­a­bly won’t make that but I think we’ll be at 55 (run rate) pretty early on next year.”

Mr Fitzger­ald said the com­mis­sion­ing of Roy Hill’s pro­cess­ing plant had hit fresh prob­lems, in­clud­ing the un­ex­pected need to fix struc­tural prob­lems in tun­nels at the fa­cil­ity.

Roy Hill shipped its first load of iron ore in De­cem­ber last year.

The com­pany is be­lieved to have shipped about 2.8mt in Septem­ber for about 38mtpa.

Roy Hill took con­trol of the $10 bil­lion mine, port and rail project from lead en­gi­neer­ing con­trac­tor Sam­sung C&T in Fe­bru­ary and Mr Fitzger­ald said that by the end of this month the com­pany would have ex­ported 14mt.

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