Fortescue Metals Group’s Fortescue Future Industries Pty Ltd has signed an agreement with the Papua New Guinea Government and wholly-owned corporation, Kumul Consolidated Holdings Ltd (KCH), that could lead to the development of PNG’s hydropower resources to support ‘green’ industrial operations.
Under the deed, the parties will promptly investigate the feasibility of these green projects for both domestic and export markets, a move Fortescue says is consistent with its record of delivering both capital growth and yield to its shareholders while sharing the benefits of sustainable development and employment with local communities.
KCH is the entity which holds in trust, the Papua New Guinea government’s non-petroleum and non-mining assets.
“Fortescue Future Industries shares Fortescue’s commitment to a green industry future and will work closely with local people and communities to establish training and long-term careers,” the company said. “This is fully aligned with Fortescue’s approach from its inception that the communities in which we operate will benefit from our growth and development.”
Subject to the completion of feasibility studies and approvals, individual projects will be developed by Fortescue Future Industries with ownership and project finance sources to be separately secured without recourse to Fortescue, the company explained.
“Execution of studies and approach to capital investment will be consistent with Fortescue’s track record of developing multi-billion dollar projects in the Pilbara, at an industry leading capital intensity,” it added.
(Pictured above is the Warangoi Hydropower Station in East New Britain, PNG, operated by PNG Power)