Roy Hill due for first export

The Roy Hill iron ore mine will begin exporting product sometime in October, according to Roy Hill Holdings chief executive Barry Fitzgerald.

The new time frame extends fractionally on the original deadline of the end of September.

Speaking at the China International Steel and Raw Materials conference in Qindoa, China yesterday, Fitzgerald told reporters the mine was on target to increase capacity to 55 million tonnes of iron ore in 15 months.

At present the Roy Hill mine has more than 19 million tonnes of ore in stockpile.

Asian brokerage and investment group CLSA said the new supply would add to the global surplus and maintain downward pressure on global prices for the commodity.

CLSA analysts expect global supply will increase by about 41 million tonnes in 2016, and a further 75 million tonnes in 2017 due to increased output from Roy Hill, and other sources in Australia and Brazil including Anglo-American’s Minas-Rio project.

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