Fortescue Metals Group annual meeting. FMG Chairman Andrew Forrest. Simon Santi The West Australian Credit: Simon Santi/The West Australian
Billionaire mining magnate Andrew Forrest will take the reins of the company he founded almost two decades ago after an extensive global search for a new leader failed to yield a better alternative.
Fortescue Metals Group revealed on Wednesday that Mr Forrest would be appointed executive chairman of Fortescue as the Pilbara iron ore miner transitions into a global leader in green energy through rapidly expanding subsidiary Fortescue Future Industries.
He will oversee the iron ore business for an interim period to help drive the company’s transition when current chief executive Elizabeth Gaines, who announced her intention to stand down late last year, exits the role in August.
Ms Gaines will remain on the Fortescue board as a non-executive director and become Global Brand Ambassador for FFI.
“Dr Forrest will now drive the unique mission to turn Fortescue green by 2030, ensuring the first-mover advantage created over the past several years is fully realised for shareholders,” the company said.
Fortescue also announced that Mark Hutchinson, former president and chief executive of General Electric Europe, will join FFI in July, initially as head of projects before assuming the role of CEO by the end of 2022.
“Bringing in someone with Mark’s global leadership experience and proven track record in managing large-scale, complex global organisations and projects goes to the heart of our global vision for FFI,” Mr Forrest said.
“We are committed to sharply arresting climate change, creating massive economic growth, increasing jobs and growing our business profitability for our shareholders.
“We will prove that going green has a fabulous and profitable future, providing significant additional value for shareholders by ramping up innovative and game-changing green technologies, green operating know-how and sharing that and our future massive green fuel supply to the world.”
Elizabeth Gaines announced her intention to step down from the role late last year. Credit: Ross Swanborough/The West Australian
Dr Hutchinson has spent 24 years at GE, including five as leader of GE in China. He has also held several leadership positions in GE Capital. Prior to his GE tenure, he was head of Asian project advisory at Barclays de Zoete Wedd.
The changes mean both the CEO of Fortescue and the CEO of FFI will report directly to the board.
Current FFI chief executive Julie Shuttleworth will continue in the role during the transition before moving to a senior executive leadership role with the green energy business.
“We must urgently reduce emissions now and at scale,” Dr Hutchinson said. “No longer should the world be dependent on heavily polluting fossil fuels.
“The green industrial revolution is well under way globally and Fortescue is leading it. As a result of this revolution, we will see an explosion in manufacturing and green energy jobs worldwide with great benefits for local communities.”
The appointments are among a raft of changes revealed on Wednesday.
Li Yifei, who currently serves on the board of BlackRock China and is a global trustee of the Rockerfeller Foundation, will be appointed to Fortescue’s board this year. She has extensive management and board experience in China.
Former CEO of AGL Energy Andrew Vesey is set to become FFI’s head of energy transition projects, bringing with him four decades of experience transforming and repositioning organisations by focusing on advanced technology and execution.
Jalal Bagherli will be appointed co-chair of recent Fortescue acquisition Williams Advanced Engineering, along with Fortescue’s deputy chair Mark Barnaba. The British technology business was purchased in March and will help Fortescue take battery power from the race track and put it to work on the miner’s Pilbara operation as it pushes to cut emissions from its diesel-heavy transport fleet.
Credit: Nic Ellis/The West Australian, by Nic Ellis The West Australian
Christiaan Heyning from Perth management consultancy McKinsey has been appointed as head of decarbonisation.
Fortescue has also set a June start date for Reserve Bank of Australia deputy governor Guy Debelle as chief financial officer of FFI.
Mr Forrest used the announcements to hit back at critics after he accused Australia’s oil and gas giants of “greenwashing” the industry, while also praising fellow Pilbara iron ore majors for their “inevitable” efforts to cut emissions.
“We are doing the hard work to genuinely decarbonise Fortescue, avoiding the temptation we see all around us to greenwash,” he said.
“I wish to specifically congratulate Rio Tinto and BHP for their efforts in their own inevitable decarbonisation journey. For those remaining in the private and public mining and energy sector who ignore the world’s need to change, you do so at your ignorance and peril.”
Fortescue shares closed at $19.39 on Tuesday.
FMG Price at posting:
$19.72 Sentiment: None Disclosure: Held
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