Fortescue says in black at current iron ore prices

SYDNEY (Reuters) - Australia's Fortescue Metals Group Ltd said on Thursday its break even cost for mining iron ore was $39 a tonne, including interest and sustaining capital expenditure, signalling it was operating in the black at current market prices.

Iron ore for immediate delivery to China - Fortescue's main market - is currently at $49.70 a tonne, down about 60 percent from a year ago. <.IO62-CNI=SI>

Capital expenditure in fiscal 2016 will be limited to ensure existing operations remain sustainable and will not add any new production capacity, Fortescue said in its third-quarter operations report.

Fortescue was up 4.5 percent to A$1.94 in early trading.

 

(Reporting by James Regan; Editing by Richard Pullin)