Fortescue’s $1.7bn whack

FORTESCUE Metals Group has hit fresh troubles at its Iron Bridge magnetite project in the Pilbara, with the company blaming Covid-19 disruptions and supply chain problems for another cost blowout and further delays.

The company released its March quarter production report on Thursday, saying the blowout at Iron Bridge could now top $1.7bn on the back of further delays at the project.

The disclosure undermines an otherwise solid performance for the iron ore major, chaired by Andrew Forrest. It is on track to set a new export record for the full financial year after shipping 46.5 million tonnes in the March quarter and upgrading its output guidance for the year.

Fortescue’s March quarter shipments were 10 per cent higher than the same period in 2021, the company said, with Fortescue having now shipped 139.5 million tonnes of iron ore in the nine months to the end of March.

Fortescue shares rose 7.96 per cent to close at $21.70.