Fortescue is making moves to become the master of its own destiny following comments from chief executive officer Dino Otranto warning Australia must act quickly to maintain its global iron ore dominance.
The iron ore giant has signed a memorandum of understanding (MoU) this week with China Baowu Steel Group’s Baowu Resources.
The companies are in talks for the development of green iron technology, a move which would secure Fortescue’s supply of iron ore into China and gel with its strategy to grow global demand for sustainable steelmaking.
Speaking at the International Mining and Resources Conference (IMARC) in October last year, Otranto emphasised the “next logical step” is for the company to “get into downstream industries”.
It seems the world’s fourth-largest iron ore supplier isn’t willing to wait.
“We are committed to building a green iron supply chain,” Fortescue chief operating officer Shelley Robertson said, as reported by Reuters.
“The partnership with China Baowu will help further accelerate the development of green iron technology and ensure that we will be able to meet growing demand for green iron in and outside China.”
It’s a timely move for the miner, who is well aware of the risks of failing to strike while the green iron is hot.
According to a recent report from Climate Energy Finance (CEF), a potential $70 billion could wash away from Australian shores every year if the nation fails to cash in on the green iron revolution.
In fact, the CEF is confident Australian export revenues would double to $250 billion by making the switch.
Fortescue’s proactivity may just become a paragon of good parenting as it expects to birth its 1500-tonne-per-year Christmas Creek green iron operation in Western Australia this year.
If Fortescue can follow through on the MoU and its plan to greenify all its products by 2030, the giant may become a pioneer of Australian green iron suppliers rubbing shoulders with Chinese behemoths.
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