The Fortescue Ltd (ASX: FMG) share price is under the spotlight after the ASX mining share announced an update about its Iron Bridge project.
Fortescue is one of the largest iron ore miners in the world.
Iron Bridge update
Fortescue gave an update on the staged ramp-up of its Iron Bridge magnetite operation.
After an optimisation assessment of the dry plant in the iron ore processing facility, Fortescue expects Iron Bridge shipments of between 10 million tonnes (mt) to 12 mt in FY26.
The operation could achieve an annualised production rate of between 16 mt to 20 mt in the second half of FY27 (on a 100% total output basis).
Reaching Iron Bridge’s expected total nameplate capacity of 22 mt per year is targeted in FY28, with further process optimisation expected.
Fortescue said Iron Bridge is on track to safely and successfully achieve its FY25 market guidance for shipments and operating costs. The miner said Iron Bridge remains an important operation for Fortescue, increasing production and shipping capacity, while complementing and enhancing its existing product portfolio.
What did the iron ore miner focus on?
Fortescue highlighted that it has a track record of capital discipline and the focus on unlocking capability at Iron Bridge through “embedding operational learnings and implementing innovative solutions.”
The assessment of the dry plant focused on optimising the performance of the air classification circuit and downstream aerobelt conveyors.
Workstreams by the business included in-house redesign of their classification units and installation of upgraded ceramic liners to address premature erosion.
Fortescue revealed Iron Bridge’s ore processing and production rate have improved as a result of these initiatives.
Final thoughts on the Fortescue share price
Fortescue shares are currently down by 1.5%, at the same time as the ASX 200 (ASX: XJO) being down 0.7%, the BHP Group Ltd (ASX: BHP) share price is down 0.4% and the Rio Tinto Ltd (ASX: RIO) share price is down 0.6%.
Fortescue continues to build towards peak production (in the current setup) with its Iron Bridge project.
The Fortescue share price is lower than it was at the start of the year, so this could be an opportunistic time to invest. But, it’s dependent on Chinese iron ore buying, so it’s not the most defensive ASX share around.
