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Fortescue secures a $2 billion loan from China

China has taken a significant step in the internationalization of the yuan by signing a record-breaking loan agreement with Australian mining giant Fortescue Metals Group.

Fortescue secures a $2 billion loan from China

Fortescue, an Australia-based iron ore mining company, announced that it has secured a syndicated term loan denominated in Renminbi (RMB) worth 142 billion Chinese yuan (approximately USD 2 billion) to support its decarbonization projects and general corporate purposes.

The company’s CEO, Dr. Andrew Forrest, referring to the U.S. decision to reduce investments in green technology, stated that this loan agreement is not merely a financial transaction but also demonstrates the determination of both China and Fortescue to lead in green energy.

Fortescue aims to reduce its Scope 1 and 2 emissions to zero by 2030 and has committed to investing more than USD 6 billion to decarbonize its operations in the Pilbara region. The company supplies more than 190 million tonnes of iron ore annually to China’s steel industry.

It was noted that the loan will support not only general corporate needs but also the company’s decarbonization agenda, which includes joint projects with Chinese suppliers and technology companies.

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