BC Iron reported Monday a 9% increase in iron ore exports over January-March to 1.22 million mt from its Nullagine 75:25 joint venture with Fortescue Metals Group from 1.12 million mt a year earlier.
The exports were, however, down 20% from 1.52 million mt in the previous quarter. Heavy rainfall in January affected loading and hauling activities, the company said.
Rainfall in January was the fourth heaviest recorded for the month in more than 100 years. Rainfall in February and March was below average, which allowed the JV to make up for the fall in exports in January, BC Iron said in its latest quarterly production report.
BC Iron said that exports in the January-March quarter exceeded wet season guidance rates due to a large stockpile at Port Hedland at the end of December. BC Iron's share of shipments in the March quarter was 0.76 million mt, accounting for 62% of the shipments from the Nullagine JV.
"This is effectively a reversal of the previous quarter, where BC Iron's share was 85% due to logistics planning and offtake commitments," the company said.
To date in the current fiscal year, BC Iron's share of iron ore shipments stood at 3.22 million mt, 74% of the total 4.36 million mt shipped from the Nullagine JV, it added.
BC Iron said that as it had anticipated, the Platts 62% Fe Iron Ore Index fell in the January-March quarter to an average of $120/mt compared with an average of $135/mt in the previous quarter.
The company added that the average CFR price for its Bonnie fines product was $106/mt in the quarter, which was adjusted to $102/mt taking into account the price of shipments delivered over October-December 2013.
Iron ore prices stabilized in a range of $110-120/mt toward the end of the January-March quarter, BC Iron said. It also reaffirmed its sales guidance for fiscal 2014-2015 of between 5.8 million mt and 6.2 million mt from the Nullagine JV.
