Fortescue iron ore shipments rise; scraps US, Aussie green hydrogen projects

Fortescue, a miner in Australia, announced record fourth-quarter shipment numbers on Thursday. This helped Fortescue meet its top-end full-year guidance. It also said that it will scrap its U.S. green hydrogen project and its Australian green hydrogen project.

After a review, the Perth-based company announced that it would not be moving forward with the Arizona Hydrogen Project, in the U.S., and the PEM50 Project, in Gladstone in Australia. The company is currently evaluating options for repurposing the land and assets.

Fortescue expects to write down a preliminary amount of $150 million before taxes in its second half results. This is due to the spending on the PEM50 Project in Gladstone and the manufacturing equipment for electrolysers in Gladstone.

The mining giant anticipates shipping between 195 and 205 millions metric tons iron ore during fiscal 2026. This includes 10 to 12 million tonnes for Iron Bridge, on a 100 percent basis.

Fortescue is the sole magnetite producer in Western Australia, and its only operation is located in the Pilbara region.

The company expects metals capital expenditures to range from $3.3 billion up to $4 billion by fiscal 2026.

The company reported quarterly iron ore shipment of 55.2 Mt. This is up from 53.7Mt a year ago and over the Visible Alpha estimate for 52.5Mt. This was due to improved processing of this steel-making material.

Fortescue, led by billionaire Andrew Forrest, shipped the most iron ore ever in fiscal 2025, 198.4 Mt. This was a record high and exceeded its annual guidance of 190-200Mt.

Rio Tinto, a giant iron ore miner, reported its highest second-quarter production of iron ore since 2018. (Reporting and editing by Devika Syamnath in Bengalur; Reporting by Roshan Mukherjee and Rajasik Mukherjee from Bengaluru)

(source: Reuters)