Fortescue Metals Group shares jumped after it reported June quarter and full-year mining rates exceeded expectations and it expects to maintain a run rate of 35 million tonnes per annum for now.
Fortescue says it mined 8.89 million tonnes in the June quarter and 31.01 million tonnes for the financial year.
Ore mined in March was 6.54 million tonnes after wet weather hampered operations.
Fortescue shares rose 9 cents, or 2.6 per cent, to close at $3.49.
Fortescue shipments for June were 7.98 million tonnes, against 6.16 million tonnes in June, for an annual rate of 27.32 million tonnes.
''The quarter results and the full-year results exceeded the previous estimates provided in the March report,'' Fortescue said in a statement.
''Importantly, the bottom line shipping rate achieved in June of 3.29 million tonnes was materially above the June quarter average and places Fortescue on its way to achieve the stated objective of progressively ramping up volumes to the first targeted milestone rate of 45 million tonnes per annum.''
In April, Fortescue said it expected to sell about 26 million tonnes in the year ending June 30, 2009.
Fortescue said that since a new benchmark price has yet to be set with China, it was selling at an interim price for each shipment with reference to a yet to be concluded benchmark price.
Fortescue said it expected to maintain a run rate of 35 million tonnes per annum until remedial works at the ore processing facility are implemented, expected in the first half of 2010.
Fortescue said mining volumes at Cloudbreak improved 36 per cent over the March quarter and the ramp up was on target.
Mining at Christmas Creek started in the June quarter and the ore is being blended with ore from Cloudbreak.
AAP
