Roy Hill to miss iron ore output target

Roy Hill to miss iron ore output target

Billionaire Gina Rinehart’s iron ore company Roy Hill has announced its Western Australia mine is unlikely to hit an aggressive target of ramping up its export rate this year due to issues at its port and processing plant in the Pilbara.

According to Roy Hill CEO Barry Fitzgerald, the target of 55 million metric tonnes a year is now planned to be reached in early 2017, instead of later this 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, we probably won’t get there,” said Fitzgerald. “We probably won’t make that but I think we’ll be at 55 (run rate) pretty early on next year.”

Roy Hill is raising output after it started shipments in December from Australia’s biggest single iron ore mine.

Gina Rinehart’s Hancock Prospecting is the majority shareholder in Roy Hill with a 70% stake.

The AUS$10 billion iron ore project, 115km of Newman consists of an open pit mine, processing plant and a 344km railway and port infrastructure at Port Hedland.