Roy Hill – a margin focused business
The Port Hedland Port Authority has allocated the amount of iron ore Roy Hill can ship each year. The allocated amount is 55mtpa and our operating model has been designed to produce this amount of iron ore annually.
Because we are constrained by the amount of iron ore we can produce, we focus on margins rather than tonnes. By this we mean, our focus is not simply on the amount of iron ore we dig from the ground, but rather on sustained, low cost production of iron ore which is consistent in quality and grade.
As a margin focused business, we want maximum return for each tonne of ore we produce. Commodity markets go up and down and by remaining focused on maximising returns, we help to ensure our business is well positioned to meet the demands of the market cycles.