Pilbara focused Fortescue Metals Group Limited (ASX:FMG) has halved its planned spending over the coming year but kept its output target.
The iron ore miner has lowered its expected capital expenditure guidance to $US650 million from an earlier forecast of $US1.3 billion.
The company still expects to deliver production of between 155 million and 160 million tonnes of iron ore over the current 2015 financial year.
CEO Nev Power says it is prudent to defer investing additional capital that increases supply into the market in the current environment.
Mr Power has advised Fortescue plans to maximise output and focus on factors within its control while also continuing the program of early and voluntary debt repayment.
Shares in Fortescue rose to one of Friday’s best performers ahead of the announcement and against a benchmark slump of 1.6 per cent.
Fortescue Metals Group reported a net profit of $2.9 billion in the 2014 financial year.
