Australia-based iron ore mining company Fortescue announced that it has secured a RMB 142. Billion (USD$2 billion) Renminbi denominated (RMB) Syndicated Term Loan Facility, with proceeds to be used to support its decarbonization efforts, as well as for general corporate purposes.
The RMB Syndicated Term Loan of its kind by an Australian corporate. In a statement announcing the loan, Fortescue Executive Chairman, Dr Andrew Forrest AO said that the development comes as the U.S. retreats from investing in green technology. In July, Fortescue announced that it had decided to halt investment in its Arizona Green Hydrogen Project, noting that “a shift in policy priorities away from green energy has changed the situation in the US.”
Forrest AO said:
“This isn’t just a financial transaction. It’s a signal of what is possible when partners are aligned in ambition. As the United States steps back from investing in what will be the world’s greatest industry, China and Fortescue are advancing the green technology needed to lead the global green industrial revolution.”
Fortescue has set goals to have its Australian iron ore operations running on green energy and achieve real zero Scope 1 and 2 terrestrial emissions by 2030, and has committed to invest over $6 billion to decarbonize its Pilbara operations. The company is a significant supplier to China’s steel industry, shipping more than 190 million tonnes of iron ore annually.
In addition to general corporate purposes, Fortescue said that the loan will support its “decarbonization agenda, including partnerships with Chinese suppliers and technology leaders.”
