Posted on 18 Jul 2024
Australian miner Fortescue says it will cut 700 jobs by month-end, and reduce its green hydrogen focus as part of a strategy to maximise value for shareholders.
The company says it will offer redundancies across its global operations, though details were not provided. Part of the changes include the appointment of a chief financial officer, chief operating officer and company secretary, Kallanish Power Materials notes.
“Fortescue remains resolute in its commitment to be the world’s leading green technology, energy and metals company with a laser focus on achieving Real Zero by 2030,” the firm says. “The company has undergone a period of rapid growth and transition, and as part of bringing together Metals and Energy into One Fortescue, initiatives are being implemented to simplify its structure, remove duplication and deliver cost efficiencies.”
By remaining “lean”, the company says it will be best positioned to deliver on its strategy and generate maximum value for shareholders.
Company founder and chairman Andrew Forrest told the Australian media that in the immediate future, focus would be on generating and distributing clean power, rather than hydrogen production.
“We’re going to stay where we know we can win, and that’s green electricity. Nothing beats green electricity,” he was quoted as saying by the Australian Financial Review.
Fortescue will “deprioritise” four hydrogen projects, including one that aimed to build a hydrogen import terminal just 16km from South Australia’s Whyalla steel mill.
The company will however continue a green hydrogen project in Arizona, US, and a $150 million green hydrogen project near Gladstone, Australia, which will start construction this year. Two further hydrogen projects in Norway and Brazil remain under consideration. The former is said to be close to a final investment decision.
Fortescue Future Industries had planned to produce 15 million tonnes/year of green hydrogen by 2030. With the refocusing and business integration, that ambitious goal is no longer on the agenda, but Forrest suggests it will one day be achieved.
Source:Kallanish Power Materials
