Fortescue Metals Group has kicked off FY25 with record iron ore shipments and advancements in sustainability efforts. The company’s strong operational performance and safety initiatives have positioned it on track to meet market expectations for the financial year.
Iron Ore Shipments Hit New Record
The company reported total iron ore shipments of 47.7 million tonnes (Mt) for the first quarter of FY25, marking a 4% increase from the same period last year. This shipment volume represents a new record for a first quarter and includes 1.6 Mt from the Iron Bridge project. The company’s strong export performance reflects Fortescue’s consistent efforts to improve production efficiency.
CEO Dino Otranto praised the achievement, emphasizing that it strengthens the company’s momentum for FY25. “This performance keeps us on course to meet our market guidance,” Otranto said.
Safety Initiatives Improve Performance Metrics
Safety remains a core focus for Fortescue. The group’s Total Recordable Injury Frequency Rate (TRIFR) for the quarter dropped to 1.2, a 29% improvement from 1.7 in September 2023. Fortescue continues to prioritize employee safety through enhanced initiatives across its operations.
“This focus on safety contributes to our success and underpins our operational performance,” Otranto added.
Progress on the Green Metal Project at Christmas Creek
Fortescue also celebrated significant progress on its Green Metal Project. Construction has begun at the Christmas Creek site, marking a key milestone in the company’s journey to develop a sustainable supply chain. The project aims to produce 1,500 tonnes of green iron metal annually, with first production slated for 2025. A feasibility study for expanding capacity to 1 million tonnes per year is set to begin next year.
The initiative aligns with Fortescue’s broader commitment to reducing carbon emissions and supporting a cleaner future.
Zero-Emission Equipment Partnership with Liebherr
Fortescue Energy also made strides in green technology, signing a $US2.8 billion partnership with Liebherr. The collaboration aims to develop and validate zero-emission equipment for mining and heavy industry. Under the agreement, the equipment will use battery power systems from Fortescue Zero.
“We continue to progress our green energy projects globally as we prepare for supportive policy developments,” said Fortescue Energy CEO Mark Hutchinson. The partnership also includes the development of autonomous, battery-electric haulage solutions for large-scale mining operations.
Financial Overview and Investment Plans
Fortescue maintained a solid financial position with $3.4 billion in cash as of September 30, despite a $1.9 billion dividend payment and $780 million in capital expenditures during the quarter. The company’s gross debt stood at $5.5 billion, with net debt rising to $2.1 billion from $0.5 billion in June 2024.
Fortescue reaffirmed its guidance for FY25, projecting iron ore shipments between 190–200 Mt, including 5–9 Mt from Iron Bridge. Hematite C1 costs are expected to range between $18.50 and $19.75 per wet metric tonne (wmt). Capital expenditure for the year is forecasted between $3.2 billion and $3.8 billion, while Fortescue Energy plans $500 million in capital spending alongside $700 million in operating costs.
Commitment to Sustainability and Community Impact
In addition to operational achievements, Fortescue announced that its Billion Opportunities program had surpassed $5 billion in contracts awarded to First Nations businesses. The company also released a Climate Transition Plan, verified by external auditors, outlining its path to achieving “Real Zero” emissions by 2030.
The company’s progress in green energy projects includes ongoing work on hydrogen initiatives across Australia, the United States, Norway, and Brazil. The company also announced plans to open a manufacturing center in Detroit to produce high-voltage marine battery packs.
Conclusion
With record-breaking iron ore shipments, enhanced safety measures, and significant progress on sustainability initiatives, Fortescue has demonstrated a strong start to FY25. The company’s investments in zero-emission equipment and green metals position it at the forefront of sustainable mining. Fortescue remains committed to maintaining its operational momentum while advancing its goal of building a cleaner, greener future.
