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Comprehensive Supply Chain Solutions

Gaines drops FMG’s

hydrogen bombshell

er comments on the suitability of play to ensure the world can meet the Par-
Hskimpy barmaids may have garnered is 2050 targets,” Gaines said in announc-
the mainstream media headlines but it was ing the project.
the positioning of Fortescue Metals Group “Subject to detailed feasibility analysis,
Ltd (FMG) as a diversified metals and en- the Tasmania project will be an important
ergy producer which stood out most from step in demonstrating our intention to posi-
Elizabeth Gaines’ appearance at Diggers tion Australia at the forefront of the estab-
& Dealers. lishment of a bulk export market for green
As the highest profile of just three female hydrogen.”
presenters at the forum, Gaines made the The move towards renewables may be
point during her presentation that the num- ambitious but FMG can do so with knowl-
ber of women reaching senior positions in edge its foundations are secure.
ASX200 companies was flatlining. The company’s Pilbara operations en-
“We believe our diverse workforce [19% joyed their best ever performance, ship-
across the board and 26% at management ping 178.2mt of iron ore in FY2020, a 6%
level] is integral to our success,” Gaines increase on FY2019. This led to revenues
said. “Research from Curtin University and of $12.8 billion (up 29% on FY2019) and
Women’s Gender Equality agency shows with C1 costs at $12.94/wmt, the company
diverse leadership results in the increased posted EBITDA of $8.4 billion and NPAT of
likelihood of better performance.” $4.7 billion.
Her comments on gender equality and Gaines said at Diggers & Dealers Chi- Elizabeth Gaines
diversity meant it was always likely Gaines na’s post-COVID recovery meant iron ore
would be pressed on her thoughts about demand had held up in the face of the pan-
Kalgoorlie’s traditional nightlife attrac- demic. gas hybrid project and the Pilbara Energy
tions and she didn’t disappoint with her “We’ve seen strong ongoing demand for Connect project will result in 25-30% of
response. all our products [from China] and pleas- our stationary energy across mining op-
“I don’t get it; I don’t get why somebody ingly this has continued into the new finan- erations being powered by solar,” Gaines
wants to go and do that. I just don’t un- cial year which has underpinned a very said.
derstand it. That’s a female perspective,” strong start to FY2021,” she said. “China Its energy capabilities are extending
Gaines told media following her presen- has largely absorbed the iron ore which into transport with an MoU signed with
tation. “I don’t know of many women who has been diverted from weaker steel mar- Hyundai and the CSIRO over hydrogen
want to walk into that environment. You’ve kets and both iron ore stocks at Chinese fuel technology for domestic transport and
got to have venues that are far more ap- ports and stocks held by steel mills remain the Christmas Creek bus fleet is set to be
propriate. But it is particular to Kalgoorlie at lower levels.” transformed to hydrogen fuel cells next
and some people like it so, who knows? The company’s confidence is reflected year.
Maybe it’s a big tourism thing.” in its investment outlook which is seeing it These moves are part of the company’s
The skimpy comments were merely a build two new mines in the Pilbara – Eliwa- repositioning as a greener miner. Gaines
distraction from the main story of not only na and Iron Bridge – as well as new energy said at Diggers & Dealers that society’s
a record year for production and finances projects for the region. greatest challenge was climate change
at FMG but also the company’s transfor- Eliwana is the most advanced project with FMG positioned to provide solutions.
mation into a multi-commodity resources with first ore expected to be on train this “We can’t lose sight of the broader is-
house. month. sues we must address and at the top of
Renowned for its arrival as an iron ore At the 22 mtpa Iron Bridge magnetite that list is climate change,” she said. “Re-
player, the company is now turning its at- mine, bulk earthworks are complete ahead newables will play an important part in any
tention to energy, with several projects of construction of the dry processing plant. future energy mix and we should capital-
designed to tap into the decarbonisation First ore is scheduled to be on ship in mid- ise on solar technology and explore hy-
of the global economy. Hydrogen is the 2022 for a project Gaines said would give drogen as an energy opportunity. Japan,
priority with the company announcing in the company greater blending flexibility. Korea and China have been identified as
November it was investigating the devel- At the Herb Elliott port facility, FMG has key prospective markets for hydrogen ex-
opment of a “green” ammonia plant in Bell received approval to increase capacity ports. And by building on our existing sup-
Bay, Tasmania. from 175mt to 201mt. ply chain capabilities and market access
“Working with our wholly owned subsidi- The company is also investing heavily we believe Fortescue and WA can be at
ary Fortescue Future Industries, we are in new energy projects, including the $800 the forefront of the establishment of a bulk
assessing clean energy opportunities lo- million Pilbara Energy Connect project and export market for hydrogen.
cally and internationally to capitalise on further renewables projects. – Dominic Piper
the important role that green hydrogen will “The integration of the Chichester solar

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