Portman lifts operating costs

Higher royalties and increased energy costs have pushed up iron ore miner Portman Ltd's operating costs, while a higher iron ore price will boost revenue per tonne by 87 per cent.

Following the recent iron ore price settlements negotiated by BHP Billiton Ltd and Rio Tinto Ltd, Portman said it expected to achieve average revenue per tonne of about $US102 this year, up from the previous guidance of $US85/t.

Meanwhile expected cost per tonne has climbed from $A53 to $55, driven by higher expected royalty payments related to higher than expected year-over-year price increases and higher energy costs.

Production volume is expected to be 7.8 million tonnes and expected sales volume is 8Mt.