Mining giant Fortescue has broken its record for iron ore shipments for the third-straight year and believes its output could lift again this year even as concerns about Chinese demand, rising costs and a global economic slowdown emerge across the industry.

Fortescue, whose chairman and biggest shareholder is billionaire Andrew “Twiggy” Forrest, told investors on Thursday it had shipped 189 million tonnes of the steel-making raw material from its mines in Western Australia’s Pilbara region.

The result was boosted by a strong production volumes in the June quarter of 49 million tonnes, slightly higher than the 48 million tonnes that most market analysts had been expecting.

“This was achieved in a challenging operating environment due to the impact of COVID-19 throughout the financial year,” Fortescue chief executive Elizabeth Gaines said.

“Despite industry-wide and global headwinds, Fortescue’s unique culture and values has delivered these exceptional results and I am immensely proud of the performance of the team.”

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Rival iron ore producers including BHP and Rio Tinto have reported significant challenges across their operations caused by new waves of the COVID-19 pandemic, a lingering labour crunch and rising inflation.

However, Fortescue on Thursday lifted expectations on its outlook, telling investors it expects to ship up to 192 million tonnes of iron ore in the year ahead.

Iron ore, which is used to make steel, is Australia’s most lucrative commodity, bringing in $133 billion to the nation’s overall export earnings in the past financial year. Benchmark iron ore prices reached a record high of $US230 a tonne last year, underpinned by an aggressive infrastructure building blitz in China fuelling enormous demand for steel at the same time as drawn-out supply disruptions dragged on iron ore mines in Brazil.