Tag Archives: Andrew Forrest

Australia and Canada ‘coopertition’ to be highlighted at IMARC

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Australia and Canada have a lot in common when it comes to mining and resources and are critical to the industry’s global transformation. While both countries are mining super-powers in their own right and are supplying a significant percentage of the resources needed for the global energy transition, they are also using their leadership to guide the global industry’s transition to a sustainable future, according to the organisers of IMARC.

Australia and Canada are recognised as the two largest exploration destinations in dollar value terms, with stock exchanges that reflect the enormous contribution mining and resources makes to each economy.

Similarly, both countries offer substantial and relatively untapped resources, conducive investment environments, supportive governments and well-established plans for the development of the critical minerals needed for the global energy transition.

Because both have a long history of operating in complex environmental and social contexts, they also have extensive experience in sustainable practices and meaningful engagement with First Nations and local communities.

Leading the transformation

This strong shared focus on ESG principles and commitment to contemporary mining practices have seen Canada and Australia emerge in the past decade as key leaders in the global industry’s response to the challenges facing mining globally.

Carl Weatherell, CEO of the Canada Mining Innovation Council (CMIC), says the leadership of the mature mining countries such as Canada and Australia are critical to achieving the mining industry’s global environmental goals.

“In order to reduce the mining industry’s energy use, water use and environmental footprint by 50% by 2027, the major players have not only an opportunity but a responsibility to work together on innovations that reduce waste, lower costs and mitigate environmental impacts across all aspects of exploration and development,” he says.

“Canada and Australia are global leaders in the mining industry with decades of experience and innovation behind them, so they have a natural role in leading mining’s transformation to a more responsive, sustainable and resilient industry.

“It’s incumbent on the two countries and their companies to work together to redefine and rethink the future of the industry in terms of in terms of how we collaborate, who we collaborate with and what we work together on.

“Coopertition”

Weatherell says while the global mining industry is competitive by nature, it also has a shared destiny, and, by necessity, has pursued active collaboration on shared challenges, particularly around decarbonisation.

“We call this ‘coopertition’ and it is one of the reasons events like IMARC are so important when it comes to pursuing these shared goals.”

He believes Canadian and Australian mining operators and innovators have long understood the need for a cooperative effort toward a more efficient, sustainable industry, recognising these goals can only be achieved if all stakeholders sign up to a clear vision for the future and work towards it together.

“The mining and resources industries in Canada and Australia are leading the way when it comes to embracing the decarbonisation challenge and lending their expertise and experience to countries where they invest,” he said.

“As we like to say, net zero is easy; zero is hard. But through exporting their leadership and best practice globally, Australia and Canada are playing a key role in meeting the challenge.”

The same, but different

From an investor perspective, Canada and Australia are considered low-risk jurisdictions, with policies and regulatory settings that welcome, encourage and incentivise exploration and development, particularly of the resources needed to fuel the global energy transition.

Both countries share a similar legal heritage, providing a level of comfort when it comes to assessing risk and a pragmatic approach to managing the energy transition.

Principal and Founder of BRIDGE©, Siri C. Genik, says while both are young countries who offer investors stable jurisdictions, strong legal frameworks and respect for the rule of law, there are also differences which can impact on the risk appetite for investors.

Genik said: “We certainly see a consistent approach to issues such as health and safety, environmental and stakeholder management, EDI, governance and more broadly sustainability. Both countries demonstrate best practices in respect of human rights and a commitment to managing the industry’s carbon footprint.

“There are common core values and opportunities for greater investment, but there are differences between both countries, including permitting processes and timelines, and different risk appetites and investment approaches.”

She says Australian companies – from mine operators to exploration and METS companies – are looking to Canada as a key source of the critical minerals needed for a renewable future such as copper, nickel, lithium and graphite.

One such company is the Andrew Forrest-backed Wyloo Metals, which is expanding its operations in Canada with a focus on nickel and copper.

Wyloo Metals CEO, Luca Giacovazzi, says the company’s investments, particularly in the establishment of a Future Metals Hub in Ontario, underscore his belief in Canada’s long-term potential to be a globally relevant producer of reliable and responsibly sourced battery metals.

“Canada has a once-in-a-generation opportunity to establish itself as a major player in the new economy,” Giacovazzi said. “Our proposed Future Metals Hub provides the cornerstone for a globally relevant battery material supply chain in Canada, while creating economic opportunities for local communities to thrive.”

But according to Genik, while investment in Canada is at healthy levels, fewer Canadian companies have been investing in projects in Australia. She said this may be a reflection of a global mining and resources industry in transition, with older investment paradigms being challenged and new alliances being formed, particularly around resource supply resilience.

Despite this, she said the shift in globalisation also represents opportunities for Canadian and Australian companies.

She said: “There are new relationships and alliances being formed as nations are increasingly wanting to stand on their own and – to the extent they can – be more self-reliant and work with partners with shared values.

“It’s not just the Russia-Ukraine situation that is driving this, but you’re also seeing similar trends across Asia and South America, creating new opportunities for investment for countries like Canada and Australia.

“As the EU is striving to ensure increased sustainable value chains for all products being included in the goods they manufacture, it has been an important game changer. They have adopted a number of very stringent sustainability requirements and regulations that all players in the industry will need to meet if they want their products to be included in products manufactured or assembled in the EU.

“Other nations are striving to also meet these requirements, and again, Australian and Canadian companies can talk to.

“The appetite is still there, the investors continue to seek a return on their investment, but not at any cost, and not always seeking instant gratification. Markets are much more fickle today and more complex, with geopolitics creating challenging dynamics for investors. We are seeing investor expectations go beyond the value of the asset and focussing on a wholistic approach to the company. Investors want to make sure that they’re understanding and including these non-technical risks and that they understand what impact and purpose is.

“The opportunity for Canada and Australia is to continue to position themselves as sustainable leaders to be successful in this era of shifting and transition.”

Canada comes to IMARC 2023 in Sydney

Canada will continue its long association with the International Mining and Resources Conference (IMARC) being held in Sydney, Australia this year with a delegation promoting the country’s vision to be the leading mining nation in the 21st century.

The delegation promises to be the largest ever and includes Canadian companies showcasing their products and services to the global mining and resources market, particularly in the Asia Pacific region, and a team from Global Affairs Canada promoting investment opportunities for companies to establish or expand their operations in Canada.

Senior Investment Officer at Global Affairs Canada, Bertrand Raoult, said Canada provides a highly competitive value proposition for investors.

Raoult said: “Canada is a global mining leader, producing over 60 minerals and metals and home to advanced exploration projects for lithium, rare earths and other critical minerals the world needs for a cleaner future. We have strong mineral exploration, mining and mineral processing sectors and these are attracting downstream manufacturing, as we are moving toward vertically integrated supply chains.”

Raoult said Canada is one of the most mining-friendly jurisdictions in the world and supports the sector through generous programs and incentives, competitive tax policies, a rich innovation ecosystem and Free-Trade agreements that give investors access to more than 50 markets.

“But it is perhaps our environmental, social and governance expertise that truly sets Canada apart from competitors,” Raoult said. “Thanks to generous programs, our minerals and metals sector industry is adopting clean and cutting-edge technologies to make mining and processing greener, safer, smarter and more efficient.

“As a result, Canada has one of the lowest ESG risks across global mining projects on average performing particularly well in categories such as water usage, community engagement, conservation and governance.”

The Canadian Critical Minerals Strategy highlights the importance of mining and resources to the nation’s global competitiveness and prosperity. The industry accounts for 626,000 direct and indirect jobs and is the largest employer for Indigenous Peoples and 19% of Canada’s total domestic exports, and approximately $47 billion in mineral production come from mines and quarries across all regions.

Raoult said: “Canada’s vision is to responsibly develop its geological resources, including critical minerals, advance the participation of indigenous peoples, ensure sustainable mining and rehabilitation practices, drive world-leading innovation, build community support for sustainable mineral development and attract underrepresented groups to this high-tech sector that is key to a green economy.”

The International Mining and Resources Conference (IMARC) is returning to the ICC Sydney from October 31-November 2, 2023. International Mining is a media sponsor of the event and will be attending.

WAE to open new facility in Oxfordshire focused on zero-emission, off-road solutions

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Fortescue Future Industries says it is significantly expanding its battery and electric powertrain production operations in the UK with the announcement of an additional state-of-the-art facility in Oxfordshire.

Fortescue Chairman, Andrew Forrest, said the expansion is part of Fortescue’s commitment to grow its British presence through the recent integration of British manufacturers WAE (formerly Williams Advanced Engineering).

“With Fortescue’s investment, British engineering will be at the cutting edge of the green energy economy with WAE’s battery systems providing world leading technology to the entire global industrial sector,” Dr Forrest said.

Following entry-into-force of the Australia-UK Free Trade Agreement, Fortescue will open a new state-of-the-art site in Banbury, Oxfordshire, significantly expanding its UK manufacturing capability, supplying advanced batteries and electric powertrains globally.

The new location will be focused on production of a wide range of zero-emission products for the off-road sector including trucks and trains. It will form part of a new global business aimed at driving decarbonisation in all fields of economic activity, while building sovereign capabilities in emerging technology.

The factory will cover over 13,500 sq.m in total and employ over 120 highly-skilled engineers, technicians, apprentices and graduates, with recruitment for the industrialisation program starting now, FFI said.

The integration follows Fortescue gearing up to meet growing global demand for the development, manufacture and supply of advanced electrification technology solutions to the off-highway sector.

The new Banbury facility will operate alongside Fortescue’s other Oxfordshire facilities including the Kidlington factory, which will open later this year. The Banbury site will be a purpose-built facility focusing primarily on manufacturing of heavy industry, electric/zero-emission powertrain systems. It will offer automated assembly for battery modules and packs, assembly of power conversion and power systems, as well as truck and train production support.

The first prototype build is targeted for July/August 2023 with the first mining haul truck module due for completion in August 2023.

The site will officially open in 2024 and will create job opportunities across all levels, including apprentices and graduates, acting as showcases for a future rollout by WAE of further global high-tech manufacturing hubs.

Fortescue signs Mining Convention for Belinga, paving way for first mining in H2 2023

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Fortescue Metals Group, through its incorporated JV company Ivindo Iron SA, has signed the Mining Convention for the Belinga iron ore project in Gabon with the Gabonese Republic, paving the way for first mining to begin in the second half of 2023.

This will open growth opportunities for Fortescue Metals and Fortescue Future Industries throughout Africa, according to the ASX-listed company.

The Mining Convention governs all the legal, fiscal and regulatory regimes for the 4,500 sq.km, which comprises the Belinga project, including early development for production of up to 2 Mt/y, while studies advance potential designs of a large-scale development.

Fortescue Founder and Executive Chairman, Dr Andrew Forrest, said: “The Gabonese Republic chose Fortescue to develop Belinga not only due to our strong track record of delivering major projects, but due also to our company-wide commitment to use our major industrial scale and expertise to assist heavy industry combat climate change.

“Geological mapping and sampling programs have confirmed our initial thoughts that this new West African iron ore hub may well one day prove to be among the largest in the world. The key aspect of this particular geology is its potential to dovetail with Fortescue Pilbara ore
blends. In doing so it will preserve and enhance the iron ore industry of both Australia and Gabon.

“We have enjoyed strong support and positive feedback from local communities. We will continue to work together to maintain Fortescue’s highest standards of environmental and community consultation.”

The capital estimate for the early stage mining development is approximately $200 million (100% basis) with investment over 2023-24. The development involves conventional open-pit mining methods to produce the ore which will be trucked and railed over existing roads and rail infrastructure, and will be shipped from the Owendo Mineral Port, near Libreville.

Ivindo Iron is the operating entity for Belinga. It is held 90% by the Belinga JV company, established by Fortescue (80% interest) and its joint venture partner, the Africa Transformation and Industrialization Fund (20%). In accordance with the Gabon Mining Code, the Gabon Government will have a free carry interest of 10% in Ivindo Iron.

The Belinga deposit was initially discovered in 1955, and subsequent exploration in the 1970s identified high iron and low contaminant mineralisation. The deposit sits in Archean aged rocks of the Congo Craton. The lithology and structure are typical of other greenstone belts that commonly host banded iron formations and itabirites found in other parts of West Africa such as the Simandou project, Fortescue says. The Belinga geology and iron ore potential is similar in scale as Simandou in its early stages of exploration, with its multi-billion tonne potential and high grades, the company added.

Belinga has been progressively assessed by Fortescue since 2018.

Iron Bridge Magnetite project progresses with first ore feed milestone

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Fortescue Metals Group has reached a new milestone on its majority-owned Iron Bridge Magnetite project in the Pilbara of Western Australia, with first ore fed into the processing plant.

With first production anticipated in the March 2023 quarter, Iron Bridge will see the world’s fourth largest iron ore miner deliver an enhanced product range and create 900 new jobs, it said.

Significantly, it could become one of Fortescue’s first fossil fuel free sites, enabled by the recently announced $6.2 billion decarbonisation investment to reach “real zero” Scope 1 and 2 emissions by 2030.

At a milestone event held at Iron Bridge today, Fortescue’s Executive Chairman, Andrew Forrest, was joined by Chief Operating Officer Iron Ore, Dino Otranto, Fortescue Board members, Elizabeth Gaines and Penny Bingham-Hall, representatives from joint venture partner Formosa, Western Australian Deputy Premier and Minister for State Development, Roger Cook, along with company executives, valued partners and suppliers.

Traditional Custodians also attended the milestone event to welcome over 100 guests to Nyamal country.

Iron Bridge, 145 km south of Port Hedland, will deliver 22 Mt/y of high grade 67% Fe magnetite concentrate. This product enables Fortescue to enter the high iron ore grade market segment, providing an enhanced product range while also increasing annual production and shipping capacity, it said.

Since the investment decision in April 2019, more than 12.8 million workhours have culminated in the design and construction of the mine, pipelines, village and infrastructure at Iron Bridge. There are currently 3,470 people working across the Ore Processing Facility and pipelines scope of work.

Forrest said: “At Fortescue, we take pride in the fact that we consistently deliver what we say we will, and Iron Bridge is no different. Building on our track record of safely and successfully developing and operating iron ore projects in the Pilbara, Iron Bridge will lead the way for magnetite operations in Western Australia.

“This project demonstrates Fortescue’s commitment to our strategic pillars of investing in the long-term sustainability of our iron ore business, investing in growth, maintaining balance sheet strength, as well as delivering strong returns to our shareholders.

“As we transition to a global green energy, technology and resources company, Iron Bridge is an obvious choice to be considered as one of our first decarbonised, fossil fuel free sites, as we deliver on our target to achieve real zero Scope 1 and 2 emissions by 2030.”

Otranto said: “The Iron Bridge high grade magnetite product is a significant differentiator for Fortescue, and led by the highly experienced project team, I am incredibly pleased with the significant progress made to achieve first ore feed into the processing plant.

“This is a project that has been delivered during a challenging environment, and despite a global pandemic, rising inflationary pressures and a tight labour market, the Fortescue Values have risen to the forefront and demonstrated our ability to continue delivering this ground-breaking project.”

The nature of the Iron Bridge orebodies and Fortescue’s use of a dry crushing and grinding circuit together contribute to the project’s operational efficiency across energy, water use and cost.

Low cost power will be delivered to Iron Bridge through Fortescue’s investment in the Pilbara Energy Connect project, which includes energy transmission line infrastructure, solar gas hybrid generation and associated battery storage solution.

The Iron Bridge Magnetite project is an unincorporated joint venture between FMG Magnetite Pty Ltd (69%), and Formosa Steel IB Pty Ltd (31%). The joint venture partners are each responsible for their equity share of the total capital expenditure.

Fortescue pledges $6.2bn of decarbonisation investment on way to producing carbon-free iron ore

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Fortescue Metals Group’s decarbonisation plans have stepped up a gear, with the company announcing it intends to eliminate fossil fuel use and achieve “real zero” terrestrial emissions (Scope 1 and 2) across its iron ore operations by 2030 with a $6.2 billion capital investment.

The investment, the company says, will eliminate Fortescue’s fossil fuel risk profile and enable it to supply its customers with a “carbon-free” product.

“Real zero” refers to no fossil fuels and, wherever possible, no offsets, the company explained. Under the use of the term, offsets must only be used as a temporary solution while the technology or innovation required to completely decarbonise is developed.

Fortescue’s strategy will see the company lead the market in terms of its response to growing customer, community and investor expectations to reduce/eliminate carbon emissions, it said.

“Fortescue expects to generate attractive economic returns from its investment arising from the operating cost savings due to the elimination of diesel, natural gas, and carbon offset purchases from its supply chain,” it added. “Fortescue is well positioned to capitalise on first-mover advantage and the ability to commercialise decarbonisation technologies.”

Fortescue made the announcement at the invitation of US President Biden’s First Movers Coalition and the United Nations Global Compact, with the Secretary General of the United Nations at the CEO roundtable on “Business leadership to rescue the Sustainable Development Goals”.

Fortescue also announced that the Science Based Targets Initiative (SBTi) will verify and audit its emissions reduction. This technical auditing initiative was instituted to ensure companies reach their Paris Agreement goal to limit global warming to 1.5 degrees centigrade.

Fortescue says its decarbonisation journey started on the commencement of the first major trip on August 25, 2020, during the advent of COVID-19 to secure technology, demand and resources for the green energy ecosystem. It consolidated further at the successful completion of the 100-day sprint to create the world’s first mining truck to run on hydrogen (a FCEV).

When fully implemented, Fortescue’s decarbonisation strategy and associated investment will provide significant environmental and economic returns by 2030, including:

  • Avoidance of 3 Mt of CO2-equivalent emissions per year;
  • Net operating cost savings of $818 million per year from 2030, at prevailing market prices of diesel, gas and Australian Carbon Credit Units (ACCUs);
  • Cumulative operating cost savings of $3 billion by 2030 and payback of capital by 2034, at prevailing market prices;
  • Elimination of Fortescue’s exposure to fossil fuels and associated fossil fuel price volatility which, in turn, will de-risk the operating cost profile;
  • Removal of the company’s exposure to price risks associated with relying on carbon offsets as well as carbon tax regulatory risk;
  • Establish a significant new green growth opportunity by producing a carbon-free iron ore product and through the commercialisation of decarbonisation technologies;
  • Ensuring future access to green driven capital markets.

Fortescue’s capital estimate of $6.2 billion is expected to see the investment largely planned in the company’s 2024-2028 financial years. This investment includes the deployment of an additional 2-3 GW of renewable energy generation and battery storage and the estimated incremental costs associated with a green mining fleet and locomotives.

The capital expenditure to purchase the fleet will be aligned with the scheduled asset replacement life cycle and included in Fortescue’s sustaining capital expenditure. Studies are underway to optimise the localised wind and solar resources.

The investment is expected to generate a positive net present value through enabling the displacement of approximately 700 million litres of diesel and 15 million GJ of gas per year by 2030, as well as the associated reduction in CO 2 emissions.

Fortescue Executive Chairman, Dr Andrew Forrest AO, said: “There’s no doubt that the energy landscape has changed dramatically over the past two years and this change has accelerated since Russia invaded Ukraine.

“We are already seeing direct benefits of the transition away from fossil fuels – we avoided 78 million litres of diesel usage at our Chichester Hub in financial year 2022 – but we must accelerate our transition to the post fossil fuel era, driving global scale industrial change as climate change continues to worsen. It will also protect our cost base, enhance our margins and set an example that a post fossil fuel era is good commercial, common sense.

“Fortescue, FFI and FMG are moving at speed to transition into a global green metals, minerals, energy and technology company, capable of delivering not just green iron ore but also the minerals, knowledge and technology critical to the energy transition.

“Consistent with Fortescue’s disciplined approach to capital allocation, this investment in renewable energy and decarbonisation is expected to generate attractive economic returns for our shareholders through energy cost savings and a sharp reduction in carbon offset purchases, together with a lower risk cost profile and improvement in the integrity of our assets.”

Fortescue has already made significant effort in decarbonising its iron ore operations through its successful green fleet trials and innovation, acquisition of Williams Advanced Engineering (WAE) and its partnership with Liebherr in June this year. Building on Fortescue’s announcement in March 2022 to develop with FFI and WAE the world’s first regenerating battery electric iron ore train, feasibility studies are progressing, with delivery of the first parabolic (gravity powered) drive trains to the Infinity locomotives scheduled to be operational by the end of 2026.

Fortescue looks to ‘accelerate and support’ mine decarbonisation with WAE buy

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Fortescue Metals Group has entered into an agreement to acquire UK-based Williams Advanced Engineering (WAE) from EMK Capital and Williams Grand Prix Engineering Limited for £164 million ($223 million) in a deal that will, FMG says, enable it to accelerate and support the decarbonisation of its mining operations as well as establish an important new business growth opportunity.

The transaction is expected to conclude by the end of March 2022, subject to the satisfaction of customary conditions precedent including United Kingdom foreign investment approval.

WAE, an offshoot of the Williams F1 team founded by the revered, late Sir Frank Williams CBE, will be vertically integrated into Fortescue’s diversified resources and green energy business and will be managed via Fortescue Future Industries (FFI), Fortescue’s green energy and green technology division.

Fortescue has worked closely with WAE since early 2021 to design and build a prototype battery system to power an electric mining haul truck, an important first step in the decarbonisation of its mining haul fleet, the miner said.

Together, Fortescue and WAE will develop battery-electric solutions for Fortescue’s rail, mobile haul fleet and other heavy mining equipment, to accelerate the rapid abatement of diesel usage to achieve the decarbonisation of Fortescue’s mining operations by 2030. In addition, Fortescue and WAE will work together to grow WAE’s green technology and engineering business.

One of the first major projects to be developed will be a world leading battery-electric train concept. Fortescue and FFI will announce further details on this early in 2022. The two are also working on a 240 t all-battery-electric truck that is in development. WAE has begun testing the cells of a battery that will power the battery-electric truck before performance testing at FMG’s Pilbara mining operations.

Fortescue, as a foundation customer, will support the development and manufacturing of battery-electric and hydrogen fuel cell power units with the goal for WAE to become a major player in the growing global market for heavy mobile equipment and rail.

WAE has also worked with Anglo American on its 291-t-class Komatsu 930E fuel cell electric vehicle.

Fortescue Founder and Chairman, Dr Andrew Forrest, said: “Together FFI and WAE will work to decarbonise Fortescue – with the aim of achieving that faster and more effectively than anyone else in the world. This is an historic moment in the future of our company as we welcome the WAE family into the Fortescue family to work together to decarbonise heavy industry and hard to abate sectors for the good of our planet, and the benefit of our shareholders.

“This announcement is the key to unlocking the formula for removing fossil fuel powered machinery and replacing it with zero carbon emission technology, powered by FFI green electricity, green hydrogen and green ammonia.”

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Fortescue and WAE share strong cultural alignment with a focus on technology and innovation to support carbon neutrality, both companies being leaders in their respective industries.

“We have been working with WAE since early 2021, with WAE designing and building a battery system to power an electric mining haul truck; an important first step in the decarbonisation of Fortescue’s mining haul fleet. WAE’s expertise in battery systems and electrification further complements FFI’s green hydrogen projects for haul trucks and mobile fleet to further underpin our technical leadership.

“We look forward to working together to apply this technology-first strategy to our emissions reduction pathway while also empowering the highly capable WAE team to achieve growth opportunities in new products, services and markets.”

FFI Chief Executive Officer, Julie Shuttleworth, added: “The acquisition of WAE adds cutting-edge technology, intellectual property and engineering capabilities to support and accelerate FFI’s Green Fleet technology pathway. Rapid growth of WAE’s world-leading technology and engineering business and an expansion of its manufacturing footprint further enhances FFI’s position to become a major player in the global market for decarbonisation of the global heavy industry sector.”

Craig Wilson, Chief Executive Officer WAE, said: “High performance battery and electrification systems are at the core of what we do at WAE, and this acquisition and investment will enable the company’s further growth to support the delivery of zero emission products and services across existing sectors – such as automotive, motorsport and off-highway – and new sectors too. This will benefit all of our stakeholders along with current and future customers who are very important to us.

“We are delighted to play a key role in Fortescue’s decarbonisation strategy, contributing to the delivery of their emissions reduction targets through high performance battery systems, green hydrogen and related technologies. We will also be focusing on addressing the sector-wide challenges in the off-highway sector. Both companies have a shared culture of innovation, setting and achieving challenging objectives and a genuine commitment to creating a sustainable future.”

Fortescue fast-tracks carbon neutrality aim, sets plan to trial hydrogen-powered drills

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Fortescue Metals Group is accelerating its carbon neutrality efforts, with the iron ore miner now expecting to achieve this ‘green’ milestone by 2030, 10 years earlier than its previous target.

Fortescue Future Industries (FFI), a wholly owned subsidiary of Fortescue, will be a key enabler of this target through the development of green electricity, green hydrogen and green ammonia projects in Australia, however, the company has also identified battery-electric technology as a potential diesel alternative game changer.

Dr Andrew Forrest, Chairman of Fortescue Metals Group, said: “We have joined the global battle to defeat climate change. We are trialling and demonstrating green hydrogen technologies in global-scale commercial environments, while also rapidly evolving into a green hydrogen and electricity producer of similar scale.”

In line with its 2030 aim, Fortescue, through FFI and its operations team, is undertaking to deliver several key projects by the stretch target of June 30, 2021. This, the company says, will underpin its pathway to decarbonisation.

These projects include:

  • Developing a ship design powered by green ammonia and trialling that design in new ammonia engine technology, at scale;
  • Testing large battery technology in its haul trucks – a project the company is pursuing with the help of Williams Advanced Engineering;
  • Trialling hydrogen fuel cell power for its drill rigs;
  • Trialling technology on its locomotives to run on green ammonia; and
  • Conducting trials to use renewable energy in the Pilbara of Western Australia to convert iron ore to “green iron” at low temperatures, without coal.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Each of these projects will contribute to the world’s inexorable march to carbon neutrality. Fortescue will establish that the major steel, truck, train, ship and mobile plant industries can be operated with renewable, environmentally friendly energy. This will be possible as a result of these ground-breaking Fortescue trials. Each will be tested by Fortescue using commercial-scale equipment to prove that the demand for direct green electricity, green hydrogen and green ammonia could one day be as large as the fossil fuel industry.”

She added: “These projects are in addition to Fortescue’s significant investment with our partners into energy infrastructure, including the Chichester Solar Gas Hybrid Project and Pilbara Energy Connect program.”

Forrest said the company’s commitment to demonstrate green hydrogen’s economic value in world-scale operations, and become a major energy exporter, means Fortescue will emerge as an “executor” of major green hydrogen projects.

He said the company’s green energy and industry initiatives may one day out-scale its iron ore business due to the global demand for renewable energy, but Fortescue’s commitment to iron ore and resources globally “remains indefeasible”.

Fortescue says it is seeking to move from being a major consumer of fossil fuel with a current trajectory of more than 1 billion litres a year of diesel being used across the operations if no remedial action is taken – to a major clean and renewable energy exporter.

FFI is advancing projects across Australia, including Tasmania, to build large-scale renewable energy and green hydrogen production capacity. This will expedite the substitution of green hydrogen and green ammonia for carbon-based fuels, it says. These projects will, with the support of Australia’s governments, contribute to a significant reduction in national carbon emissions.

Fortescue’s Forrest opens up about iron ore miner’s ‘green steel’ ambitions

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Fortescue Metals Group Chairman and founder, Dr Andrew Forrest (pictured), has revealed the iron ore miner has plans to build Australia’s first “green steel” pilot plant this year.

A commercial plant, powered entirely by wind and solar, could be constructed in the next few years he said in the first Australian Broadcasting Corporation (ABC) Boyer Lecture for 2021, entitled: ‘Oil vs Water: Confessions of a Carbon Emitter’.

In a wide-ranging talk, he acknowledge that Fortescue was trialling both known methods of making “zero-carbon-steel” without the use of coal in Australia: replacing coal in the furnace with ‘green hydrogen’ and adding carbon separately to strengthen the steel, and “zap[ping] the ore with renewable electricity”.

On the development of such an industry, Forrest said: “We could look at losing our coal industry as a national disaster – yet, I’ve always believed, out of every setback, is the seed of equal or greater opportunity.

“We produce over 40% of the world’s iron ore. And our potential green energy and hydrogen resources are immeasurable.

“If Australia were to capture just 10% of the world’s steel market, we could generate well over 40,000 jobs – more than what’s required to replace every job in the coal industry.”

Fortescue, through its Fortescue Future Industries company, has been signing agreements to leverage hydro-electric power and geothermal energy to become one of the “world’s largest green energy and product businesses”, Forrest said.

“We’re now undertaking feasibility studies that could lead to some 300 GW of power – more than four times what Australia can produce,” he explained.

Forrest also mentioned some of the decarbonisation work Fortescue is currently working on.

Back in December, Fortescue Chief Operating Officer, Greg Lilleyman, announced the company was working on developing an in-house, non-diesel 240 t haul truck prototype that will test both battery-electric and fuel-cell electric drivetrain technology in the Pilbara of Western Australia.

Seemingly referencing this project, Forrest said: “By the end of the decade, our trucks will run on renewable energy. Imagine that: a fleet of vehicles that produces nothing more than steam as exhaust.”

He also said the company was aiming to develop “green iron ore trains” powered by either renewable electricity or “green ammonia”.

Looking at the company’s shipping operations, he said 2021 would see the company “begin to settle designs” that allow its ships to run on “zero-pollution, green ammonia”.

He added: “And we’re willing to share that knowledge, to help our competitors go green too – including Vale, one of the largest mining companies in the world.”

Fortescue Future Industries to investigate Indonesia’s hydro, geothermal power potential

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Fortescue Future Industries has signed its second hydropower agreement in a week, with the Fortescue Metals Group subsidiary agreeing with the Government of Indonesia on a pact that allows it priority to investigate projects using the country’s hydropower and geothermal resources for ‘green’ industrial operations.

This comes on top of the government and Minderoo Foundation, a company chaired by Fortescue Metals Chairman, Andrew Forrest, signing a letter of intent to dramatically reduce plastic pollution in Indonesia’s coastal waters by 2025.

The Deed of Agreement provides first priority to Fortescue Future Industries to conduct development studies into the feasibility of projects using Indonesia’s hydropower and geothermal resources to support green industrial operations, principally for export to global markets, it said.

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.

This follows a similar green hydropower agreement with the PNG government, signed recently.

“Fortescue Future Industries is underpinned by Fortescue’s world-class expertise, operational excellence and proven capability to drive future growth,” the company said. “Fortescue is a values-based business, committed to investing in the long-term sustainability of its core business while pursuing growth and development and delivering returns to shareholders.”

The Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia, Luhut Binsar Pandjaitan, said: “Indonesia and Fortescue Future Industries have entered into a preliminary binding agreement to assess the development of Indonesia’s substantial renewable power to drive green industries.”

Minister Luhut and Fortescue’s Forrest said in a joint statement: “The establishment of totally new and future large-scale industries will drive growth in Indonesia’s economy.”

Forrest added: “We have historically always enriched our organisation by providing training for guaranteed employment to local communities who have then strongly supported the projects we have developed together. We expect the new green industries in Indonesia to substantially diversify, broaden and deepen Indonesia’s already skilled workforce.”

Minister Luhut commented: “For too many decades, proposals have been thrust upon Indonesia that rely on the Indonesian people assuming the full financial risk through the purchase of electricity at prices that underwrote these developments. This agreement allows Fortescue Future Industries to access all the major hydropower and geothermal opportunities in Indonesia and establish downstream value adding industry to fully utilise the power created from sustainable energy sites.”

Meanwhile, through a joint partnership with the Government of the Republic of Indonesia, Minderoo Foundation will pilot its ‘Sea The Future’ initiative in Indonesia to scale up recycling and waste collection infrastructure and operations. Sea The Future is a coalition of leading companies in the plastics industry committed to ending plastic leakage to nature and accelerating the transition to a circular plastics economy, according to Fortescue.

Fortescue integrates WA iron ore supply chain into the Hive

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Fortescue Metals Group has officially opened the Fortescue Hive, the company’s newly expanded Integrated Operations Centre (IOC) which, FMG says, uses the latest technology and brings together the company’s fully owned and integrated supply chain.

Fortescue Founder and Chairman, Dr Andrew Forrest, and Chief Executive Officer, Elizabeth Gaines, celebrated the official opening in Perth with various politicians and members of the iron ore miner’s Board of Directors and core leadership team.

The purpose-built facility includes Fortescue’s planning, operations and mine control teams, together with port, rail, shipping and marketing teams. It allows 330 team members across Fortescue’s complete supply chain to work together, 24 hours a day, seven days a week, to deliver improved safety, reliability, efficiency and commercial outcomes, the company said.

Dr Forrest said: “Mining is one of the most innovative industries in the world. Fortescue has long been a technology leader in the industry and was the first mining operation in Western Australia to control a railway from a remote location when we unveiled our Train Control Centre in Perth in 2009.

“Since then, Fortescue has continued to lead the pack and today we officially launch the Fortescue Hive, our reimagined IOC, which sits at the heart of our integrated supply chain to deliver critical ores to develop the great cities of our region and beyond.”

Earlier this month, Fortescue celebrated an important milestone in the rollout of autonomous haulage technology at its Chichester Hub operations, in the Pilbara of Western Australia, with the conversion of its 100th autonomous truck.

Chief Executive Officer, Elizabeth Gaines, said: “Fortescue has developed the world’s most advanced vertically integrated bulk operations infrastructure. We are very proud to open our enhanced IOC, the Fortescue Hive, which enables us to operate our globally significant mines from the centre of Perth.

“The Fortescue Hive seamlessly links our core exploration, metallurgical, mining and marketing expertise to deliver value to our customers, shareholders and the broader community. Importantly, the Fortescue Hive will underpin our future use of technology, including artificial intelligence and robotics, and will expand to include the generation and integrated distribution network for the Pilbara Energy Connect, our hybrid solar-gas power solution.”

Chief Operating Officer, Greg Lilleyman, said Fortescue’s integrated management of the mine to market supply chain was “unique” in the industry and co-locating its planning, operations, shipping and marketing business functions would further leverage its “exclusive advantage”.

He added: “By ensuring our teams are truly integrated, we can capitalise on market dynamics and respond to the needs of our customers.”

The Fortescue Hive covers an area of 2,500 sq.m and, over 15 weeks, 6.5 t of concrete was removed from the building, while 2.1 tonnes of steel was installed. The fit-out of the facility included 162 workstations and 996 computer monitors, connected by 64 km of underfloor cables.