Forrest’s Fortescue sets up Gabon ‘taskforce’ for slow-to-roll Belinga project as shipments crack record

Andrew Forrest’s Fortescue has stuck to guidance for the year despite a spike in operating costs during the December quarter, and broken a previous record for first-half iron ore shipments. The WA iron ore miner shipped 50.5 million tonnes over the three months to December 31, lifting total shipments halfway through the 2026 financial year to 100.2 million tonnes, a 3 per cent increase on the same time last year. However unit costs rose 5 per cent on the prior quarter to $US19.10 a per wet metric tonne, which Fortescue pinned on turning through lower grade ore and higher diesel costs. Nevertheless, the miner held full-year guidance of between $US17.50 and $US18.50 a tonne. There was also word on Fortescue’s plans to grow its iron ore presence beyond the Pilbara in the Thursday update, with a “presidential taskforce” established to try and get things moving on the Belinga project in Gabon. “We’ve also continued to progress studies into the Belinga iron ore project in Gabon, establishing a Presidential Taskforce to streamline the planning and delivery of an integrated mine, rail and port solution,” Fortescue growth and energy chief Gus Pichot said. There are now four reverse circulation drill rigs and one diamond core rig operating on site. First ore from Belinga was shipped in 2023 but progress to establish firm ramp-up and production plans have been slow, in-part because of a military coup that toppled the country’s ruling family. A tonne of Fortescue’s Pilbara hematite iron ore was fetching $US93/dry metric tonne (dmt), while product from the higher-grade magnetite from the Iron Bridge operations went for $US122/dmt for the quarter. The prices Australian iron ore miners take for their product from China has come into focus, as BHP negotiates new terms with customers in China. Rio Tinto moved away from the London-based Platts pricing index to a new index overseen by China’s main iron ore buyer — China Mineral Resources Group. Fortescue cemented advances into copper over the quarter. In December, it moved on Peru-focused copper play Alta Copper, paying $152 million in cash for the shares it didn’t already own in the business. Rising prices have driven a buying frenzy for the red metal among listed mining companies.