Fortescue delivers iron ore record but will book $227m impairment after scraping two hydrogen projects
Iron ore is flowing from Fortescue’s Pilbara mines at record rates but the green hydrogen side of the global business continues its rout.
Fortescue shipped 55.2 million tonnes of iron ore from its Port Hedland export hub in the June quarter to finish the the 2025 financial year with 198.4mt shipped.
The results, predicted by The West Australian, were both a quarterly and annual record for Fortescue.
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By continuing you agree to our Terms and Privacy Policy.Costs to produce the steel-making ingredient fell for the first time in five years and the company believes it could trim more fat in the months ahead.
Andrew Forrest’s flagship company has pencilled in exports of between 195mt and 205mt this financial year, including 10mt to 12mt from its Iron Bridge project.
The troubled project was already supposed to be at its annual nameplate capacity of 22mt of iron ore concentrate but Fortescue in May conceded that target will not be achieved until at least 2028.
Fortescue is spending $US50m ($75m) on a pilot plant at its Christmas Creek mine in the Pilbara to turn iron ore into steel using ‘green hydrogen’. Green hydrogen is produced by the electrolysis of water via renewable energy sources.
Dino Otranto, the chief executive of Fortescue’s money-spinning metals division, said the project is “largely” on track to generate first steel by the end of this year.
“We had an extreme stretch target to finish that project by the end of this calendar year, and it’s largely still on track for that,” he told analysts and investors on Thursday.
“We’re well into the construction now of the the actual steel plant, the hydrogen facilities and all that are already built, so we’re looking forward to commissioning the plant soon.”
But the company’s broader green hydrogen hopes have taken another major blow.
“Following a detailed review, Fortescue has determined that the Arizona hydrogen project in the United States and PEM50 Project in Gladstone, Australia will not proceed,” it stated on Thursday.
“An assessment is under way to repurpose the assets and the land.”
Fortescue expects to book a $US150m ($227m) write-down after scrapping the two projects.
More to come . . .
