Plant problems delay Roy Hill target
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.