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Highlights

  • Iron Bridge’s nameplate capacity of 22Mt per annum is now expected by FY 2028—well behind the original September 2024 target.

  • FY 2026 production forecast revised to 10–12Mt, with a ramp-up to 16–20Mt in the second half of FY 2027.

  • Fortescue remains confident of meeting FY 2025 guidance amid ongoing optimisation efforts and improved processing performance.

Fortescue Ltd (ASX:FMG) shares were under pressure in Thursday’s morning trade, slipping 1% to AU$15.83 after the company announced a revised timeline for its Iron Bridge magnetite project ramp-up. The update revealed that full nameplate production will now take significantly longer than previously anticipated.

The iron ore giant informed investors that following a recent optimisation review of the dry plant at the Iron Bridge ore processing facility, it now expects to ship between 10 to 12 million tonnes (Mt) in FY 2026. This will be followed by an increase to an annualised rate of 16–20Mt during the second half of FY 2027. However, the company is now targeting the project’s full nameplate capacity of 22Mt per annum only by FY 2028.

This revised timeline represents a substantial delay compared to Fortescue’s earlier target of reaching full capacity by September 2024.

Despite the setback, Fortescue remains optimistic about Iron Bridge’s role in its long-term growth strategy. The company reiterated that it expects to meet its FY 2025 guidance for shipments and operating costs. Management highlighted that Iron Bridge continues to play a vital role in expanding Fortescue’s production and shipping capabilities while complementing its existing portfolio of iron ore products.

The delay is largely attributed to technical challenges, particularly premature erosion affecting parts of the dry plant. In response, Fortescue has implemented several engineering and process improvements, including an in-house redesign of the air classification units and the installation of upgraded ceramic liners. These upgrades aim to resolve erosion issues and improve plant reliability and performance.

The company reported that these initiatives have already contributed to improved ore processing and production rates. Management emphasised that Iron Bridge's optimisation aligns with Fortescue’s broader approach of operational discipline and innovation.