RPT-UPDATE 1-Fortescue says ships 27.3 mln/t iron ore in 08/09
(Repeats to add UPDATE 1 tag in headline) * Fortescue beats 2008/09 iron ore output target * Boost comes despite lack of Chinese benchmark price * May make price adjustments if benchmark eventually set (Adds details, quotes, share price)
SYDNEY, July 13 (Reuters) - Fortescue Metals Group Ltd (FMG.AX) shipped 27.3 million tonnes of iron ore to China in fiscal 2009, slightly above its target, despite uncertainty over pricing, the company said on Monday.
Fortescue, Australia's third largest iron ore miner behind Rio Tinto Ltd/Plc (RIO.AX)(RIO.L) and BHP Billiton Ltd/Plc (BHP)AX>(BLT.L), also said it would maintain a run rate of 35 million tonnes per year through the first half of 2010.
In April, Fortescue said it expected to sell about 26 million tonnes in the year ending June 30, 2009.
Fortescue shipments in the June quarter were 7.98 million tonnes, up from 6.17 million tonnes in the previous quarter.
Unlike its larger Australian rivals, Fortescue, which started mining ore little over a year ago, sells its ore exclusively to steel mills in China, where an annual benchmark price has yet to be established. This may lead to sales price adjustments to shipments since April 1 that are unlikely to be material, the company said.
"Fortescue is currently selling at an interim price for each shipment with reference to a yet-to-be-concluded benchmark price," the company said in releasing its June quarter production report.
"This may result in some price adjustments for shipments depending on whether, and if so when, any benchmark price is agreed."
Based on fixed annual prices for iron ore fines already set at a 33 percent discount to last year between the world's largest miners and steel mills in Japan, South Korea and elsewhere, Fortescue will realise a price of around $57 per tonne, freight on board, it said.
Fortescue, which plays no role in setting benchmark prices in China, said it cost $26.47 to produce each tonne of ore over the last year.
Benchmark prices each year take effect between April 1 and March 31 the following year.
Questions over whether a benchmark will be established for the current year have been clouded by the detention of Stern Hu, an Australia citizen and three Chinese employees of Rio Tinto's iron ore department in China on what Beijing said was suspicion of stealing state secrets.
The detentions came just after Chinese steel mills, led by the China Iron and Steel Association, failed to reach an agreement on 2009 iron ore prices with Rio and rival miners BHP Billiton and Vale (VALE5.SA) of Brazil by a June 30 deadline.
Fortescue gained 5.6 percent to A$3.60 by 0116 GMT, bucking a downtrend in the wider market, with the S&P/ASX 200 index .AXJO off 0.2 percent. (Reporting by James Regan; Editing by James Thornhill)
