Fortescue Breaks Iron Ore Records While Shelving Hydrogen Ambitions
Fortescue Metals Group (FMG) has just made waves across the mining sector, not only by smashing its iron ore export records, but also by making a significant strategic pivot — stepping away from two of its much-hyped green hydrogen projects. This latest move is making headlines, and if you're following the ASX or the future of clean energy investments, it's one worth unpacking.
In the 12 months leading up to June 2025, Fortescue shipped a record volume of iron ore, setting a new benchmark for the company and the broader Australian mining industry. Investors responded with confidence, sending FMG shares up by 4% to a five-month high. The market clearly liked what it heard, especially the forecast that iron ore export volumes could rise another 3% in the coming year, all while lowering production costs.
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However, the celebration came with a caveat. Fortescue announced it will record a $227 million impairment charge after pulling the plug on two of its green hydrogen projects. These projects, once touted as key pillars in Andrew Forrest’s bold green energy strategy, were found to be commercially unviable — at least for now. The decision marks a clear shift in focus, back toward what Fortescue does best: delivering massive volumes of high-grade iron ore to the global market.
Andrew Forrest has long been a vocal advocate for green hydrogen and reducing carbon emissions, so this retreat signals a pragmatic reassessment of short-term priorities. While the company remains committed to its longer-term sustainability goals, it appears that the immediate path to profitability lies in the iron-rich Pilbara, not experimental energy ventures.
This development sends a clear message to both the market and environmental stakeholders: Fortescue is doubling down on core operations while applying financial discipline to its green ambitions. As Forrest himself often says, the path to a cleaner future must be economically sustainable — and that includes knowing when to pivot.
So while the dream of hydrogen may be delayed, Fortescue's iron ore engine is running stronger than ever.
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