SYDNEY, July 27 (Reuters) - World no. 4 iron ore miner Fortescue Metals Group FMG.AX on Wednesday lowered its production cost target for fiscal 2017 to $12 to $13 per wet metric tonne, down from its fiscal 2016 average of $15.43 a tonne.
The reduction in so-called C1 costs over fiscal 2016 would more closely align Fortescue's cost structure with those of larger rivals Rio Tinto RIO.AX RIO.L , BHP Billiton BHP.AX BLT.L and Vale VALE5.SA and provide a greater cushion amid volatile iron ore prices.
The company also set shipment guidance for fiscal 2017 at 165 million to 170 million tonnes, little changed from the 169.4 million tonnes shipped in fiscal 2016.