The Conversation (0)
July 13, 2023
Focus shifts to development of flagship Block 103 Magnetite Iron Ore Project in the Labrador Trough region of Canada
Cyclone Metals Limited (ASX: CLE) (Cyclone or the Company) is pleased to announce it has entered into a binding term sheet for the sale of its non-core gold assets that include: 100% interest in the Nickol River Gold Project tenements in Western Australia (Nickol River Project) and the Longwood Range Gold Copper PGE Project, Mareburn Gold Project, Macraes South Gold Project, Drybread – Waikerikeri Gold Project, and Muirs Gold Project located on the North and South Islands of New Zealand (NZ Projects), to BVI registered company Moosh Moosh Limited (Moosh).
Highlights
- Sale of 100% interest in tenements that comprise the Nickol River Project in the West Pilbara of Western Australia
- Sale of 100% interest in tenements that comprise the Longwood Range Gold Copper PGE Project, Mareburn Gold Project, Macraes South Gold Project, Drybread – Waikerikeri Gold Project, and Muirs Gold Project located on the North and South Islands of New Zealand
- In aggregate, the sale will provide CLE with $4M of liquid assets (cash and/or shares in a listed company)
- The sale of these non-core gold assets ensures that the Company is fully focused on the development of the Block 103 Magnetite Iron Ore Project
The Company has agreed to sell 100% interest in tenements E47/3176, L47/565, L47/686, L47/687, L47/688, L47/689, M47/087, M47/127, M47/401, M47/421, M47/435, M47/455, M47/577, P47/1524 and P47/1812, that comprise the Nickol River Project located in West Pilbara of Western Australia (Nickol River Project Sale).
In addition, the Company has agreed to sell 100% interest in tenements PP60700, PP60707, PP60708, PP60709, EP60663, EP60671, EP60692, PP60693, EP60694 and EP61013 (pending grant) located on the North and South Islands of New Zealand (NZ Projects Sale).
The Nickol River Projects and NZ Projects are considered non-core assets and their sale is a key step in the Company’s strategy to focus on developing its flagship 100% owned Block 103 Magnetite Iron Ore Project (Block 103), located in the Labrador Trough region of Canada.
Paul Berend, CEO of Cyclone Metals, commented: "This sale of non-core assets illustrates our commitment to the development of our world class iron ore project Block 103; whilst ensuring that our investors retain exposure to the upside of these gold assets via a royalty stream and/or equity stake. Both Block 103 and these gold assets will benefit from a dedicated management team and Board.”
KEY TERMS OF THE SALE
1. Consideration in total of AU$ 4,000,000 in cash or equivalent in shares in an ASX-listed company or New Zealand-listed company to be paid by Moosh on Settlement.
2. The Company shall be entitled to a 1% net smelter royalty on minerals extracted from the Tenements.
3. The Nickol River Project Sale and NZ Projects Sale is expected to complete by no later than 29 September 2023, or at the satisfaction or waiver by Moosh of the Conditions Precedent.
4. Conditions Precedent include:
a. Completion of due diligence (DD) by both parties no later than 29 September 2023
b. Payment of AU$200,000 from Moosh to Cyclone for maintaining tenements in good order during the DD period. This amount will be refundable if the transaction does not complete.
Click here for the full ASX Release
This article includes content from Cyclone Metals Ltd., licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
CLE:AU
18 August
Top 10 Iron Ore-producing Countries
Iron ore prices have displayed volatility in the past half decade as the world has dealt with the economic uncertainty surrounding COVID-19 lockdowns, the Russia-Ukraine war, ongoing conflicts in the Middle East and rising trade tensions.
Prices for the base metal reached a record high of over US$220 per metric ton (MT) in May 2021, but that level wouldn't hold for long as lower demand from China alongside rising supply levels caused prices to dropped drastically in late 2021.
Iron ore prices rebounded to trade in the US$120 to US$130 range in 2023, spurred on by supply issues in Australia and Brazil, as well as the Russia-Ukraine war; higher export duties in India and renewed demand from China have also contributed to the commodity's higher prices.
However, that positive sentiment in the iron ore market evaporated in 2024 as the global economic outlook weakened on higher interest rates, lower demand and challenges in China's property sector. After starting the year at a high of US$144 per MT, iron ore prices slid to finish out the year at about US$95.
A cyclical rebound in Chinese steel production in Q1 2025 did manage to push prices for the metal back above US$100 again to briefly touch US$107 per MT in February. However, in Q2 2025, China's economic woes, a growing surplus in iron mine supply and steel and aluminum tariffs were responsible for pressuring iron ore prices back down below US$95 as of late June.
"Geopolitical tensions have spurred some countries to explore alternative sources of iron ore, raising the profile of new geographic markets,” reports Fastmarket in its June 2025 iron ore market outlook. “The emergence of resource nationalism, where governments exert greater control over mineral resources, is further complicating trade. Policy changes in iron ore-consuming regions, driven by trade tensions and domestic priorities, have led to adjustments in global supply chains.”
To better understand the dynamics of the iron ore market, it's helpful to know which countries are major producers. With that in mind, these are the top 10 for iron ore production by country in 2024, using the latest data provided by the US Geological Survey. Production data for public companies is sourced from the mining database MDO.
1. Australia
Usable iron ore: 930 million metric tons
Iron content: 580 million metric tons
Australia is the largest iron producing country by far, with usable iron ore production of 930 million metric tons in 2024. Australia’s leading iron ore producer is BHP Group (ASX:BHP,LSE:BHP,NYSE:BHP), and Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Fortescue (ASX:FMG,OTCQX:FSUMF) are also large iron producers.
The Pilbara region is the most notable iron ore jurisdiction in Australia, if not the world. In fact, Rio Tinto calls its Pilbara Blend "the world’s most recognised brand of iron ore." One of the company's iron producing operations in the region is Hope Downs iron ore complex, a 50/50 joint venture with Gina Rinehart's Hancock Prospecting. The complex hosts four open-pit mines with an annual production capacity of 47 million metric tons.
In June 2025, the partners announced a combined investment of US$1.6 billion to develop the Hope Downs 2 iron ore project, a part of the main JV. The project hosts the Hope Downs 2 and Bedded Hilltop deposits, which together will have a total annual production capacity of 31 million metric tons.
As for BHP, the major iron miner's Western Australia Iron Operations joint venture comprise five mining hubs and four processing hubs. One such hub is Area C, which hosts eight open-cut mining areas alone. The company also has an operating 85 percent interest in the Newman iron operations.
2. Brazil
Usable iron ore: 440 million metric tons
Iron content: 280 million metric tons
In Brazil, iron production totaled 440 million metric tons of usable iron ore in 2024.
The largest iron ore districts in the country are the states of Pará and Minas Gerais, which together account for 98 percent of Brazil’s annual iron ore output. Pará is home to the largest iron ore mine in the world, Vale's (NYSE:VALE) Carajas mine. Headquartered in Rio de Janeiro, Vale is the world's biggest producer of iron ore pellets.
Vale announced plans in February 2025 to make significant investments in increasing its production at Carajas by 13 percent through 2030.
3. China
Usable iron ore: 270 million metric tons
Iron content: 170 million metric tons
China's iron production amounted to 270 million metric tons of usable iron ore in 2024. The Asian nation is the world’s largest consumer of iron ore, despite being the third largest iron-producing country.
China's top producing iron ore mine is the Dataigou iron mine in Laioning province, with production of 9.07 million metric tons in 2023. The underground mine is owned by Glory Harvest Group Holdings.
With China being the world’s largest producer of stainless steel, its domestic supply is not enough to meet demand. The country imports over 75 percent of global seaborne iron ore as of mid-2025.
3. India
Usable iron ore: 270 million metric tons
Iron content: 170 million metric tons
India’s iron production for 2024 totaled 270 million metric tons of usable iron ore, tying for third place with China.
India’s largest iron ore miner, NMDC (NSE:NMDC), operates the Bailadila mining complexes in Chhattisgarh state and the Donimalai and Kumaraswamy mines in Karnataka state. NMDC hit a production milestone in 2021 of 40 million metric tons per year, the first such company to do so in the country. NMDC is targeting an annual production rate of 100 million metric tons by 2030.
5. Russia
Usable iron ore: 91 million metric tons
Iron content: 53 million metric tons
Russia's iron ore production came in at 91 million metric tons in 2024, making it the fifth largest iron-producing country in the world.
The region of Belgorod Oblast is home to two of the country's biggest iron ore producing mines: Metalloinvest's Lebedinsky GOK, which in 2023 produced an estimated 22.05 million metric tons of iron ore; and Novolipetsk Steel's Stoilensky GOK, which that same year produced an estimated 19.56 million metric tons of iron ore.
In response to serious economic sanctions on the country over its aggressive war against Ukraine, Russia’s iron ore exports fell dramatically in 2022 to 84.2 million metric tons from 96 million metric tons in the previous year. Together, these two countries previously accounted for 36 percent of global iron or non-alloy steel exports. The European Union has restricted imports of Russian iron ore.
Last year, imports of iron ore from Russia to the EU seemingly fell off a cliff, dropping from 332,300 tons to 9,360 tons.
6. Iran
Usable iron ore: 90 million metric tons
Iron content: 59 million metric tons
Iran surpassed 90 million metric tons in iron production in the form of usable iron ore in 2024. The country's iron output has been on the rise in recent years — now in sixth place, it was the eighth highest iron producer in 2022 and the 10th in 2021.
One of Iran's most important iron ore mines is Gol-e-Gohar in Kerman province, which is also the country's top producer. During the March 2024 to January 2025 period, the country's major mining companies' combined iron pellet production reportedly increased by 7 percent year-over-year.
The country's iron mines are supplying its steel industry, which produced 31 million MT of steel in 2024. In its 20 year roadmap released in 2005, the Iranian government set an annual steel production target of 55 million MT by 2025. To better meet the requirements of domestic steel producers, Iran began levying a 25 percent duty on iron ore exports in September 2019. The exact rate has changed multiple times since, and in February 2024 the country cut duties on these products significantly.
7. South Africa
Usable iron ore: 66 million metric tons
Iron content: 42 million metric tons
South Africa’s iron production was 66 million metric tons of usable iron ore in 2024. The country's output has declined significantly in the past few years, down from 73.1 million MT three years earlier. South Africa's mining industry is grappling with transport and logistics issues, most notably due to railway maintenance challenges.
Kumba Iron Ore is Africa’s largest iron ore producer. The company has three main iron ore production assets in the country, including its flagship mine, Sishen, which accounts for a large majority of Kumba’s total iron ore output. Anglo American (LSE:AAL,OTC Pink:AAUKF) owns a 69.7 percent share of the company.
8. Canada
Usable iron ore: 54 million metric tons
Iron content: 32 million metric tons
Canada’s iron production totaled 54 million metric tons of usable iron ore in 2024. In June of that year, the Canadian government updated the nation's Critical Minerals List "to include high-purity iron, citing the necessity of that mineral’s role in decarbonization throughout the steel supply chain," according to the USGS.
Champion Iron (TSX:CIA) is one company producing iron ore in Canada. It owns and operates the Bloom Lake complex in Québec. Champion Iron ships iron concentrate from the Bloom Lake open pit by rail, initially on the Bloom Lake Railway, to a ship loading port in Sept-Îles, Québec. A Phase 2 expansion, which entered commercial production in December 2022, increased annual capacity from 7.4 million metric tons to 15 million metric tons of 66.2 percent iron ore concentrate.
As of 2025, Champion is investing in upgrading half of its Bloom Lake mine capacity to a direct reduction quality pellet feed iron ore with up to 69 percent iron.
9. Ukraine
Usable iron ore: 42 million metric tons
Iron content: 26 million metric tons
Ukraine's iron production for 2024 was 42 million metric tons of usable iron ore. The metal represents a key segment of the country's economy. Metinvest and ArcelorMittal (NYSE:MT) are the leading producers of iron ore in the nation.
Despite the ongoing war, Ukraine's iron ore mining industry has proved as resilient as the people, even though there have been temporary shutdowns. However, 2025 looks to be turning into a particularly hard year. In the January through April period, iron ore exports decreased by 20.9 percent in value terms and by 10.2 percent in physical volumes year-over-year. GMK Center predicted in May that by the end of this year, "Ukraine’s iron ore exports will decline by about 20% y/y to 27 million tons from 33.6 million tons in 2024."
10. Kazakhstan
Usable iron ore: 30 million metric tons
Iron content: 9.2 million metric tons
Kazakhstan's iron production came in at 30 million metric tons of usable iron ore in 2024.
Kazakhstan has several iron ore mines in operation, with four of the top five owned by Eurasian Resources Group. The largest of these iron ore mines is the Sokolovsky surface and underground mine located in Kostanay. In 2023, it produced an estimated 7.52 million tonnes per annum of iron ore.
The Sokolov-Sarybai Mining Production Association (SMPA) in Northern Kazakhstan was the main supplier of iron ore to Russia’s Magnitogorsk Iron and Steelworks prior to the country’s invasion of Ukraine. Since then, the SMPA has halted iron ore shipments to Magnitogorsk.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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24 June
Rio Tinto and Hancock Pledge US$1.6 Billion to Advance Hope Downs 2 Iron Ore Project
Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and privately owned Hancock Prospecting said on Tuesday (June 24) that they will invest US$1.6 billion to develop the Hope Downs 2 iron ore project in Pilbara, Western Australia.
According to Rio Tinto, Hope Downs 2 has received all necessary approvals and is set to sustain production from the Hope Downs joint venture, in which Rio Tinto and Hancock are equal partners.
Each company will shell out US$0.8 billion for the project.
Hope Downs 2 holds the Hope Downs 2 and Bedded Hilltop deposits, which will have a combined total annual production capacity of 31 million tonnes.
“Approval of Hope Downs 2 is a key milestone for Rio Tinto, as we invest in the next generation of iron ore mines in the Pilbara,” said Rio Iron Ore Chief Executive Simon Trott in the company's press release.
“These projects are part of our strategy to continue investing in Australian iron ore and to sustain Pilbara production for decades to come, supporting jobs, local businesses and the state and national economies.”
Pilbara is one of Australia's key mining regions and has been critical to global steel supply for more than six decades.
The joint venture between Rio Tinto and Hancock was established in 2006. Production at Hope Downs 1 began in 2007.
In 2018, the joint venture opened Baby Hope, a new deposit at Hope Downs that was developed to help sustain existing capacity at the Hope 1 operation and support ongoing jobs at Hope Downs.
According to Rio Tinto, an average of 950 jobs will be created during construction of Hope Downs 2, and approximately 1,000 jobs will be sustained at Greater Hope Downs once operational.
The company expects to invest more than US$13 billion on new mines, plant and equipment from 2025 to 2027.
Rio Tinto and Hancock said ore from the new deposits will be processed at Hope Downs 1, with first ore expected and associated infrastructure planned to be operational by 2027.
Other Rio Tinto developments
Earlier this month, Rio Tinto opened the US$3.1 billion Western Range iron ore mine in Western Australia.
Western Range is a joint venture between Rio Tinto and China Baowu Group, a state-owned iron and steel Chinese company. The operation is projected to produce up to 25 million tonnes of iron ore annually.
Rio also recently announced a leadership shakeup after Chief Executive Jakob Stausholm stepped down.
Hancock to unite Roy Hill and Atlas Iron
In a separate development, Hancock said it is uniting its Roy Hill and Atlas Iron operations under a new banner called Hancock Iron Ore. The major operational realignment is set to take effect on July 1.
Executive Chair Gina Rinehart said that the world of iron ore is evolving, so Hancock follows.
“We are not just rebranding. We are building on the exceptional legacy and remarkable achievements of Roy Hill, Atlas Iron and Hancock," Australian Mining quotes her as saying.
Roy Hill is among Australia’s leading iron ore miners, delivering approximately 64 million tonnes annually to steelmaking markets in nearby Asia. Atlas Iron exports 10 million tonnes a year.
The latter was acquired by Hancock in 2018 and has since undergone "a successful operational turnaround."
Hancock and Rinehart have a long history of investing in Australian iron ore and other commodities.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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02 June
Leadership Shakeup: Rio Tinto's Stausholm to Step Down Amid Broader Industry Turnover
Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) announced on May 22 that Chief Executive Jakob Stausholm will step down later this year following a formal succession plan arranged by the company.
While the mining giant has not provided a reason for the leadership transition, a Reuters report suggests the move may stem from internal “conflicting priorities,” citing six unnamed sources familiar with the matter.
These sources told the news outlet that the decision is not linked to any scandal.
Instead, they indicated that rising costs have became a growing concern internally, with Stausholm reportedly advised to prioritize cost-cutting measures and operational efficiency.
However, he is said to have been “resistant” to shifting focus.
Despite the leadership change, one source told Reuters that the board remains confident in Rio Tinto’s growth pipeline and affirmed that the company’s overall strategy remains unchanged.
Stausholm’s journey at Rio Tinto
Stausholm joined Rio Tinto as executive director and chief financial officer in 2018.
He took over the position of chief executive in 2021.
“Under Jakob’s leadership, Rio Tinto has restored trust with key stakeholders, aligned our portfolio with the commodities where demand growth is strongest, built a diverse and talented management team, and set a compelling growth trajectory,” said Rio Chair Dominic Barton in the company's release.
In the past year, Rio has made three major lithium moves: the acquisition of Arcadium Lithium, the expansion of the Rincon project in Argentina and the recent acquisition of a 51 percent stake in the Altoandinos project in Chile.
Still, reports imply that Stausholm’s leadership was not perfect.
Reuters quotes one source as saying that he “became more likely to push back on board suggestions and too quickly dismissed opportunities the board felt could have been better explored.”
Merger talks with Glencore (LSE:GLEN,OTC Pink:GLCNF) were cited as an example. Stausholm reportedly rejected an approach from the commodities giant when it was initiated last year.
Since taking the helm at Rio Tinto, Stausholm has faced scrutiny, with some investors questioning whether a leader with deeper mining experience might be better suited to guide the company through its next phase of growth.
Stausholm holds a degree in economics from the University of Copenhagen. Before joining Rio, he served as chief strategy, finance and transformation officer at Maersk (CPH:MAERSK-B) and spent 19 years with Shell (NYSE:SHEL,LSE:SHEL), bringing a background in finance and energy to the mining major.
Stausholm’s potential successors
Considering what Rio Tinto wants to take and not take from Stausholm’s leadership, the question remains: Who is the company looking at as the next chief executive? Reuters’ sources pointed to Simon Trott, head of iron ore, Chief Commercial Officer Bold Bataar and aluminum boss Jerome Pécresse.
All three have been able to work on addressing critical headaches at the company: Trott has helped repair relationships in Australia, Bataar successfully oversaw the underground expansion of the Oyu Tolgoi copper mine in Mongolia during his term as chief copper executive and Pécresse turned the firm's aluminum unit around.
”Pécresse may have an advantage given his management style focused on cost-cutting,” one of Reuters’ sources said. “Rio doesn’t need another visionary right now.”
Stausholm will remain chief executive until a replacement is found.
“A rigorous selection process is already underway, led by the Nominations Committee,” the company said.
At the time of this writing, Rio Tinto was focusing on three strategic pillars: expanding its critical minerals footprint, boosting decarbonization efforts and enhancing operational efficiency.
Oyu Tolgoi is ramping up production, targeting annual output of 500,000 metric tons by 2028. A solar farm in Pilbara is also in the works, and is projected to reduce the company’s CO2 footprint to 120,000 metric tons per year.
“It has been an absolute privilege to lead Rio Tinto, one of the great mining and materials companies in the world. I would like to thank the deeply dedicated and talented people across the organisation that together have raised both operational performance and project execution,” Stausholm said.
“We have built on Rio Tinto’s historic strengths to deliver profitable, stable growth and significant shareholder value. I know the company will continue to thrive long into the future.”
More major miner management shakeups
An hour after Stausholm announced his resignation, Mark Hutchinson, CEO of Fortescue Energy, a division of Fortescue (ASX:FMG,OTCQX:FSUMF), also said that he is stepping down.
Effective July 1, Fortescue Metals' Latin America leader, Agustin Pichot, will act as CEO of growth and energy. Fortescue Metals CEO Dino Otranto will assume broader responsibilities, including hydrogen and electrification oversight.
Media reports from the likes of the Australian Financial Review say Hutchinson will remain as a senior advisor.
In addition to these major miner shakeups, media reports circulating since April suggest BHP (ASX:BHP,NYSE:BHP,LSE:BHP) is on the hunt for a replacement for Chief Executive Mike Henry.
Developments are being monitored, as analysts believe that the chosen leaders will play critical roles in addressing the industry’s current challenges and advancing toward sustainable growth.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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11 April
Rio Tinto Spends Record AU$10.3 Billion with Western Australian Suppliers in 2024
Major miner Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) reported total spending of AU$10.3 billion with Western Australian suppliers in 2024, marking a new record for the company.
The commodities giant boosted its spending with suppliers in the state by AU$1.5 billion for the year in a bid to support local businesses continuously and grow its Pilbara mining portfolio.
Since 2018, the company has worked with around 2,400 suppliers in Western Australia annually. Its annual spend with suppliers has more than doubled over the past six years.
“Rio Tinto has been in Western Australia for almost 60 years, and we remain committed to sharing our success with the communities where we operate,” said Rio Tinto Iron Ore Chief Executive Simon Trott.
He added that partnering with local businesses allows the company to help create jobs and strengthen regional communities, all while providing benefits and sponsorship to small to large business owners.
Rio Tinto is also prioritising Indigenous-owned businesses in the state. Its spending with Indigenous-owned businesses in 2024 reached AU$769 million, 30 percent more than the recorded amount in 2023. Pilbara businesses received AU$969 million from Rio Tinto, with 60 percent of this going to Indigenous-owned businesses in the region.
Rio Tinto has attributed the spending increase to its project developments in the state, including heavy mining machinery and earthworks for its US$2 billion Western Range mine.
Located in Pilbara 10 kilometres southeast of Paraburdoo, the Western Range mine is expected to produce 25 million tonnes of iron ore annually. It is scheduled to open and complete its first production this year.
The company received approval for its US$1.8 billion Brockman Syncline 1 project this month, allowing it to sustain production and support for Western Australian businesses moving forward.
Rio Tinto owns a portfolio of large iron ore assets in the Pilbara. The company had produced 327.9 million tonnes of iron ore at these operations as of 2023, employing around 16,000 people across its projects.
A total of 17 mines, four independent port terminals, a rail network spanning nearly 2,000 kilometres and related infrastructure are held by Rio Tinto in the region. These assets help it maintain its reputation in the global iron ore industry.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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02 April
Fortescue's Forrest Hones in on Renewable Energy, Aims to Go Green by 2030
Andrew Forrest, founder and executive chair of major mining company Fortescue (ASX:FMG,OTCQX:FSUMF), has been making headlines following his bold statements on renewable energy.
Toward the end of February, the mining tycoon was quoted as saying that Fortescue is quitting fossil fuels.
According to news outlets like TIME and CNBC, he said the company will stop burning fossil fuels across its Australian iron ore operations by the decade’s end, calling on other companies to do the same.
“It’s time for businesses to stop talking about long-term targets and completely ditch fossil fuels in the coming years rather than in the coming decades,” he states in a February 25 TIME article.
“If you think you can’t go green, then you’re right,” he says of his industry colleagues … It’s time for you to get off the stage and learn from someone with more talent, more conviction, or initiative than you who can lead your company.”
Fortescue’s vow to eliminate fossil fuels by 2030 and lower costs traces back to its US$6.2 billion investment in 2022, when it announced its plan for industry-leading decarbonisation. It said at the time that the investment was designed to eliminate its fossil fuel risk profile and enable it to supply customers with carbon-free products.
Notable big oil companies like BP (LSE:BP,NYSE:BP) and Shell (LSE:SHEL,NYSE:SHEL) have recently announced they will cut back on clean energy pledges, saying that they will focus more on oil and gas production.
BP said the decision is a strategic reset to reduce and reallocate capital expenditure to drive growth, pursue performance improvements and work on cost efficiency. Meanwhile, Shell CEO Wael Sawan explained that the company is providing the secure energy customers need at the present while working on its transformation to win in a low-carbon future.
Forrest believes big oil companies are getting it wrong, especially now that customers are in search of green energy.
“I’ve always found that the customer is always right, which is why we’re going renewable and moving away from oil and gas," he said on CNBC 's Squawk Box Europe on March 24.
"Our customers are saying, ‘We want energy, but not at any cost, and if you can give us green energy at the same price as dirty (energy) then we are going to buy green every day.’ That’s my job, and that’s Fortescue’s job."
He added, “Well, if (the) oil and gas (industry) doesn’t want to supply green energy, guess what, Fortescue will."
As the fourth largest iron ore producer in the world, Fortescue’s push to reduce fossil fuel dependency and emissions is a significant step toward sustainable mining practices.
Its US$6.2 billion investment to eliminate fossil fuels is expected to displace around 700 million litres of diesel and 15 million gigajoules of gas per year — reducing emissions by 3 million tonnes of carbon dioxide annually.
The company is also working toward its green fleet, developing battery-electric haul trucks and exploring hydrogen- and ammonia-powered mining equipment to eliminate diesel consumption.
Green initiatives and developments
Fortescue has made a variety of advances into clean energy in recent years.
In March, Fortescue Green Pioneer, the world's first dual-fueled ammonia-powered vessel, docked in London. It is on a global tour of ports aimed at fast-tracking international shipping’s transition to green fuels.
In 2020, the company announced the US$450 million Pilbara generation project, which aims to enhance Fortescue's power-generation capacity using 150 megawatts (MW) of gas-fired power with 150 MW of solar photovoltaic generation and 50 MW of battery storage. The project is part of the Pilbara Energy Connect (PEC) initiative.
Fortescue completed the first phase of PEC in 2024. Included was a 100 MW solar farm at North Star Junction and 140 kilometres of transmission lines and substations.
In an update via X on Wednesday (April 2), the company said that the 100 MW solar farm at North Star is currently supplying over 25 percent of Iron Bridge’s energy demands.
Fortescue’s Renewable Progress Powers Ahead in the Pilbara! 💪
— Fortescue (@FortescueNews) April 2, 2025
As we work towards our Real Zero goal by 2030, we’re thrilled to share updates on our transformative renewable energy projects:
☀️ Operational Now: Our 100MW solar farm at North Star Junction is currently supplying… pic.twitter.com/wxv5JaKZux
Another project, a 190 MW solar farm at Cloudbreak, is expected to be completed in 2027. Fortescue said this will significantly reduce its diesel and gas consumption.
A 640 MW Turner River solar project has also been proposed by the company, which has said it could become Western Australia’s largest green energy initiative. The proposal was submitted by Fortescue's subsidiary, Pilbara Energy, to the Western Australian Environmental Protection Authority.
Sinead Booth, Fortescue's group manager of decarbonisation delivery, said that these initiatives are crucial as the company continues to reduce emissions and advance its commitment to a sustainable future.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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10 March
Rio Tinto Plans US$1.8 Billion Investment in BS1 Extension, Completes Arcadium Acquisition
Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) made headlines after two announcements on March 6.
The mining giant said it will invest US$1.8 billion to develop the Brockman Syncline 1 mine project (BS1), a move that will extend the life of the Brockman region in West Pilbara, Western Australia.
BS1 now holds all necessary government approvals. It has been developed in consultation with the Puutu Kunti Kurrama and Pinikura Traditional Owners and the Muntulgura Guruma Traditional Owners.
The development of the project will help Rio Tinto sustain production from its iron ore operations. It is projected to have a processing capacity of up to 34 million tonnes per year of iron ore.
“Securing this project extends the life of the Brockman hub. This is good for our business, good for Western Australia and good for the Australian economy,” said Rio Tinto Iron Ore Chief Executive Simon Trott in a press release.
“Rio Tinto has been mining iron ore in the Pilbara for almost six decades and our tranche of new mines will ensure we can continue to supply the globe’s ongoing need for iron ore, for decades to come," he added.
Construction of BS1 will begin this year and will provide 1,000 jobs. Once operational, the project is set to sustain an average of 600 workers. First ore, originally planned for 2028, is now scheduled in 2027.
In a separate announcement, Rio Tinto confirmed the completion of its acquisition of Arcadium Lithium. First announced in October 2024, the all-cash transaction was for US$6.7 billion.
Analysts from Canaccord Genuity previously estimated that a combined Rio Tinto-Arcadium entity could supply around 10 percent of the global lithium chemicals market by 2030. Rio Tinto also said in its initial announcement that a combination of the companies’ assets would “represent the world's largest lithium resource base.”
“This establishes us as a global leader in energy transition commodities and one of the leading lithium producers globally with one of the world’s largest lithium resource bases,” the company said in its March 6 release.
“Arcadium’s operations and growth projects are located in geographies where we already have a significant presence, allowing us to leverage our existing infrastructure, networks and expertise to achieve substantial benefits over time.”
Shared jurisdictions by Rio Tinto and Arcadium include Argentina, where Rio Tinto is developing its Rincon project.
The company released an initial mineral resources and ore reserves report for Rincon this past December, saying the project holds 1.54 million tonnes of lithium carbonate equivalent in the measured category, 7.75 million tonnes in the indicated category and 2.29 million tonnes in the inferred category.
Following the acquisition of Arcadium, Rio is now the third largest lithium producer in the world. It follows major companies Albemarle (NYSE:ALB) and SQM (NYSE:SQM).
Australia remains the world’s largest lithium-producing country at 88,000 tonnes in 2024.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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