Pilbara must help China decarbonise steel to stay in the game – Fortescue CEO
Iron-ore major Fortescue is continuing its push into green iron production, with CEO Dino Otranto telling investors on Wednesday that the Pilbara must help China decarbonise steelmaking if it is to remain globally competitive.
Speaking during the company’s earnings call, Otranto said construction of Fortescue’s Green Metal project at its Christmas Creek mine is advancing, with first production targeted this year, positioning it as the first project at scale in the Pilbara to produce green metal.
“The steel industry is changing. Customers want low-emission steel. China is looking for partners to make that happen. If the Pilbara wants to stay in the game, that means working with China to decarbonise its steel industry," Otranto said.
"There is an exciting opportunity here for Australia and China,” he added.
Otranto added that he would return to China next month to continue engagement with steelmakers and renewable-energy companies as Fortescue continued to build on its green metals strategy.
The Christmas Creek pilot facility forms part of ‘green pit to product’ supply chain plan that Fortescue is developing for the Pilbara. By pairing its green mining fleet with green ironmaking technology, the company aims to demonstrate the technical viability of commercial-scale green metal production using both magnetite and hematite ores.
Fortescue has previously outlined plans to supply more than 100-million tonnes a year of green iron metal to China, potentially eliminating more than 200-million tonnes of CO2 emissions every year. The company argues that rethinking the entire iron and steel value chain will underpin a new green industry in Australia.
