Miner’s target unlikely
Roy Hill chief executive Barry Fitzgerald has admitted the Gina Rinehart-controlled company is unlikely to hit an “aggressive” target of ramping up its export rate to nameplate levels of 55 million tonnes a year by December.
Roy Hill had initially planned a two-year ramp up to its 55 million-tonne-a-year run rate, but pulled that forward to a far more aggressive 11 month ramp-up program as the iron ore price began to fall last year.
But Mr Fitzgerald confirmed last week the company was unlikely to reach a 55mtpa run rate by the end of the year, telling reporters at the Pilbara project it was likely to be reached early in the new year instead.
He said the commissioning of its processing plant had hit fresh problems earlier this year, including the unexpected need to fix structural problems in tunnels at the facility.
Mr Fitzgerald said he did not think Roy Hill would export 55 million tonnes of iron ore in 2017, although he believed the company would come very close.
Roy Hill shipped its first load of iron ore in December last year.
Gina Rinehart’s Hancock Prospecting is the majority shareholder in Roy Hill with a 70 per cent stake.
The $10 billion project 115km north of Newman includes an open pit mine, processing plant, a 344km railway line and port infrastructure at Port Hedland.
Roy Hill Holdings chief executive Barry Fitzgerald.