Fortescue Reports Supply Growth, But Labor Shortages

The world's fourth-largest iron ore producer has voiced its concerns.

Australian mining company Fortescue Metals Group on Tuesday reported a 2% increase in second-quarter shipments, but noted pressure from strong demand for labor and resources, as well as supply chain restrictions due to the pandemic.

The world's fourth-largest iron ore miner shipped 47.5 million tons of steel in the December quarter, up from 46.4 million tons a year earlier.

Bigger competitors BHP Group and Rio Tinto have also warned of disruptions due to coronavirus-driven workforce shortages as Australia sees a spike in Omicron cases.

Slightly optimistic production results came on the back of tighter environmental and industrial controls, as well as the real estate crisis in China, which affected the forecast for steel demand.

Fortescue, run by billionaire Andrew Forrest, left its full-year guidance unchanged.