No worries Wes.Interesting to see Dino back in China continuing...

No worries Wes.

Interesting to see Dino back in China continuing discussions with potential Chinese partners (see LinkedIn).

Points taken from the presentation below.

* Australia currently exports >900Mtpa iron ore.
* China consumes 1.6Btpa iron ore, producing 1Btpa steel.
* Steel production accounts for 8% of global carbon emissions.

Fortescue's decarbonisation plan..

The company is aimimg to:

* Decarbonise profitably;
* Lower their operating costs; and
* Future proof their business by creating new revenue streams.

Let's look at how this might be achieved with their green iron project.

* In 2024 negotiations took place between Fortescue and the Chinese Government to produce 100Mt of green iron. Negotiations continue.

Here Fortescue have an opportunity to jointly develop a fully integrated Australia-China green iron supply chain.

How so?

Fortescue will aim to provide China with 100Mtpa of green iron to eliminate 220Mtpa of carbon emissions.

Should the partnership materialise...

* The iron ore will be mined using Fortescue’s green equipment.
* Fortescue’s processing facilities will be powered by solar & wind.
* The green power equipment will be supplied by Chinese OEMs.

And it will look like this....

* Green sustainable mining.
* Large-scale renewable power.
* To produce green iron ore with green hydrogen.

What's the plan to bring this all together?

* The capital needed will be minimised through both parties technology.
* Green iron ore production proximate green iron facilities.
* The Chinese OEMs will supply renewable equipment and electrolysers to Fortescue designs.
* It will utilise green hydrogen which will require 8Mtpa of green hydrogen produced using direct solar to hydrogen technology.
* It will be developed in partnership with Chinese steelmakers.
* It will produce a high grade iron product compatible with Chinese steelmaker infrastructure.

The logistics of this all?

* The green iron will be transported from ironmaking facilities to Port Hedland.
* Fortescue will utilise their existing logistics infrastructure and zero emissions rail solution.
* The green iron product will be shipped to China utilising ammonia powered vessels that will be jointly developed between Fortescue & China.
* The companies will aim to produce up to 1.4Mtpa of green ammonia as fuel.
* Where bunkering infrastructure in Australia, China & Singapore already exist.

How might this potential joint venture partnership split look like?

Will it be similar to the Iron Bridge joint venture between FMG (69%) and Formosa Steel (31%)?

Reference:

https://cdn.fortescue.com/docs/default-source/announcements-and-reports/jp-morgan-forum-presentation.pdf?sfvrsn=12a31d37_9

Tony