Initially targeted to reach full capacity in mid-2023, Iron Bridge aims to produce 22 million tons per year by financial year 2028. Since starting the project in 2019, Fortescue has struggled with cost overruns, equipment failures and management crises. These problems led to the resignation of two senior executives in 2021, including the project's chief operating officer, Greg Lilleyman.
Iron Bridge plays a key role in Fortescue's product diversification strategy by producing a high-grade magnetite concentrate with 67% iron content, a departure from Fortescue's portfolio of low- and medium-grade ores. This high purity product, obtained through an energy-intensive process, enables low-grade Western Australian ore to be valued at higher prices in the global market.
The company noted that the ceramic liners in the processing plant needed to be replaced and the air-based rock separation system redesigned. Stating that optimization efforts in the process are ongoing, Fortescue aims to reach production levels of 10 to 12 million tons by June 2026.
Iron Bridge is one of two high-quality products Fortescue is bringing to market. The other is West Pilbara Fines, launched in 2018 in response to Chinese demands for greener steel production. The company plans to add a third high-quality product from its “green iron” plant at Christmas Creek to its portfolio later this year.
Movement in management
Concurrent with the project delay, Fortescue has made significant changes to its management team. Mark Hutchinson, 65-year-old head of energy, is stepping down and will remain with the company as a senior advisor. Shelley Robertson, in charge of operations, is retiring. The company's growth and energy division will be led by Agustin Pichot, former captain of Argentina's national rugby team. Pichot will lead Fortescue's green energy transition.
This change comes at a remarkable juncture in the mining industry. Fortescue's announcement came just an hour after Jakob Stausholm, CEO of rival Rio Tinto, announced he was stepping down. However, Fortescue did not provide further details on these leadership changes.
“Green iron” warning in the sector
Experts warn that if Australia fails to accelerate its green iron production, the industry risks losing 50% of its revenues. In November, a report published by think tank Climate Energy Finance highlighted the world's rapid shift towards steel production with renewable energy.
Fortescue's Iron Bridge project and moves towards a green product portfolio are part of the company's efforts to stay strong in the global competition and achieve its carbon neutrality goals.
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