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Fortescue Metals posts largest-ever profit

SYDNEY
2019-08-26 15:57

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SYDNEY, Aug. 26 (Xinhua) -- Western Australian mining outfit Fortescue Metals Group has announced a record full-year profit to the Australian Securities Exchange on Monday, buoyed by higher iron ore prices and soaring demand from the Chinese steel industry.

Underlying net profit after tax came in at 3.19 billion U.S. dollars in 2019, up substantially from last financial year's figures which landed at 1.08 billion U.S. dollars.

While the world's fourth largest iron ore producer's earnings were strong, Fortescue's Chief Executive Elizabeth Gaines reiterated the company's unique culture and values which ensures

"communities benefit from the growth and development of its business."

"At the heart of our approach to building sustainable communities is empowerment and an emphasis on practical initiatives that create economic opportunities through training, employment, local sourcing, and the support of community programs," she said.

With operations in remote parts of Australia among isolated indigenous communities, Gaines also highlighted the importance of the company's relationship with the nation's traditional land owners.

"We are one of the largest employers of Aboriginal people and provide unprecedented opportunity for business development through our Billion Opportunities procurement program, which reached 1.55 billion U.S. dollars in contracts awarded to Aboriginal businesses and joint ventures since 2011," she said.

While the company has flagged a strong start to 2020 with demand from its largest market China continuing to increase, there are still some major headwinds the Aussie miner may soon have to face. With the global supply of iron ore now normalizing after disruption in 2019, the high prices seen recently are likely to start falling, according to analysts.

On top of this, the U.S.-led trade conflict could also trigger a slowdown in the global economy which may threaten future demand for commodities around the world.
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