Fortescue Ltd., one of Australia's leading mining companies, announced that it achieved record iron ore shipments in the previous quarter despite concerns about steel demand in China. The company also announced that it had canceled some large-scale green energy projects due to energy costs.
Fortescue reported a record iron ore shipment of 55.2 million tons in the fourth quarter, bringing the total for the 2025 fiscal year to a record 198.4 million tons, meeting the upper limit of its annual expectations.
700 Layoffs, Withdrawal from USD 700 Million Projects
Fortescue had begun to gradually withdraw from several green hydrogen projects last year. In this week's announcement, it was revealed that the company has completely abandoned the USD 550 million Arizona Hydrogen Project in the US and the USD 150 million PEM50 project in Gladstone, Australia. This decision also resulted in a pre-tax loss of USD 150 million.
The company stated that it has initiated an evaluation process to assess the assets and land associated with these projects for other purposes.
Iron Bridge and Belinga Projects Progressing Slowly
On the other hand, it was reported that the company's Iron Bridge project in Western Australia may take until 2028 to reach full capacity. No detailed information has been shared about the Belinga project in Gabon since the trial export at the end of 2023. Fortescue stated that drilling operations are continuing in the region.
The company's retreat from its energy transition projects is directly linked to uncertainties in the global commodities market and energy costs. However, record iron ore shipments demonstrate that Fortescue remains in a strong position in its core operations.
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