Fortescue to develop Gabon iron ore mine amid green revolution

  • 12/15/2021
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Dec 15 (Reuters) - Fortescue Metals Group (FMG.AX) said on Wednesday it has entered into an agreement with the Gabon government in Central Africa to develop an iron ore project, even as the Australian miner aims to become the world"s biggest green energy group. The Belinga iron ore project, located in the northeast of Gabon, has been progressively assessed by Fortescue since 2018 and is potentially one of the world"s largest undeveloped, high-grade hematite deposits. The agreement will include a 36-month exclusivity period over the 5,500 square kilometre area and the formation of a Gabon mining company, owned 80% by Fortescue, to hold the tenure over the project. "Fortescue is pursuing global opportunities in iron ore that align with our strategy and expertise," Chief Executive Officer Elizabeth Gaines said in a statement. "We look forward to working with the Gabon Government on this project as we continue to invest in assets to optimise growth and returns in our iron ore business." Fortescue, which aims to become carbon-neutral by 2030, has been emphasizing its push to transition from a pure-play iron ore producer to a green energy firm over the past year, signing a string of green energy projects, which some investors have called grand in their ambition but lacking detail. read more The miner is already readying its operations to run on hydrogen, developing fuel cell vehicles like trucks, trains and buses, and eventually aims to fuel ships and even produce "green iron", which could be used to make steel without burning dirty coking coal.

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