Australian iron ore miner Fortescue Metals Group has said that heavy rainfall across the Pilbara region in Western Australia has impacted its mining operations and so its iron ore production for the March quarter this year will be at the bottom end or slightly below its previous guidance of 8.5-9 million mt.
The combination of lower production impacted by weather and the commissioning of Fortescue's second major ore processing facility at Christmas Creek will result in higher cash operating costs on a per unit basis for the March quarter 2011, reads the company's statement.
Fortescue also said that its operations are now running as per normal and commissioning of the new Christmas Creek ore processing facility is underway, with a ramp-up to 55 million mt per year expected during the June quarter 2011 as planned.