Fortescue Presses on with Plans to Eliminate Emissions from its Business

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Global mining company Fortescue is focused on pressing ahead with its multi-billion-dollar plan to decarbonize its iron ore operations by the end of the decade.  

At the 34^th annual BMO Global Metals, Mining & Critical Minerals Conference, Dr. Andrew Forrest, Executive Chairman, Fortescue, doubled down on his company’s Real Zero plan, a goal to eliminate emissions without carbon offsets by 2030 and benefit shareholders along the way. 

His speech took place the same day Time magazine put the mining executive on its cover under the headline “The planet’s unlikely ally.”  

The Time article highlights Fortescue’s “Real Zero“ plan to stop using fossil fuels at its primary mining operations in Australia’s Pilbara region by 2030. The US$6.2-billion investment includes renewable energy generation and battery storage, as well as the estimated incremental costs associated with a green mining fleet and locomotives.  

Forrest explained that it would eliminate the company’s fossil fuel risk profile and enable it to supply its customers with a carbon-free product.  

Forrest stressed that his green energy stance isn’t ideological. “I want to run the world’s most efficient mining company.” To that point, eliminating the company’s fossil fuel costs, which account for a significant portion of the miner’s operating budget, will lower the company’s expenses by “hundreds of millions of dollars” annually, he said. 

“We are the cutting edge of technology if we’re prepared to embrace it. I am completely embracing it,” he said. “This isn’t about anything but dollars and cents.” 

Apart from looking to technology to reduce the company’s carbon footprint, Forrest said the miner is also using the latest technologies to drive innovation.  

Fortescue’s determination to constantly innovate with technology ensures it remains one of the most competitive and efficient miners in the world and Australia’s highest shareholder returning company since its inception by a considerable margin, Forrest told the audience. 

While the company looks to become more innovative, the challenge is attracting young workers to help develop the new technologies they need to decarbonize and unlock new ore bodies. Forrest acknowledged that these workers are not looking for careers in the mining industry because of its lack of innovation. 

“We’ve got to face this uncomfortable truth. Maybe we don’t innovate quickly enough,” he told the audience. “We should be the most innovative, technologically advanced industry in the world. Our industry moves more tons than anyone else. It needs great technology. It needs huge amounts of energy, and that energy should be produced at the lowest cost possible. That’s green energy.” 

Forrest believes going all-in on zero emission solutions is what the market ultimately wants. 

He urged policymakers not to reverse course on renewable energy commitments and investments. “I wouldn’t be cutting off the fastest growth and largest portion of the energy sector, which is renewables, any time soon,” Forrest said. “I wouldn’t be cutting off any economic solutions.” 

He envisions a future driven by “economic hardcore common sense,” with demand for both traditional oil and gas and renewable energy sources.  

Forrest said Fortescue will continue on its path to decarbonization to save money and manage risk. 
 

“I want everyone in this room to know where they will go if they want a green metal, green energy, green technology or green capital solution. I want you to know that Fortescue is here. The economics are with us. The economics are with you,” he said.