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MINING.COM
February 01, 2024
By
Bloomberg News
Fifth Fortescue executive quits as
management exodus deepens
A senior executive in Fortescue Ltd.’s energy
business has quit the Australian iron ore-to-hydrogen giant, the
latest in a string of senior departures raising questions about the
company and its green energy ambitions.
Michael Gunner, a former lawmaker who rose to chief minister of
Northern Territory, announced his resignation from the Perth-based
company in a Linkedin post Thursday. After being appointed in October
2022 to lead the energy arm’s new northern Australia team, Gunner took
on the Australian Director role in August and travel commitments had
since made his position “too difficult,” he said.
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The departure, the fifth to hit the senior leadership team in six
months, comes just days after Deborah Caudle, the chief financial
officer of the energy arm, left the firm created by billionaire Andrew
Forrest two decades ago and today is the world’s fourth-largest iron
ore miner. In recent years Forrest has embraced clean energy and
particularly green hydrogen, announcing a string of projects and an
expansion into asset management.
Senior departures from his team have highlighted
concerns among some investors around Forrest’s leadership style and
the scale of his ambition, as Australia’s richest man attempts to
transform an iron ore miner into a producer of clean fuel essential to
decarbonize heavy industry.
For now, the group remains reliant on revenue from sales of iron ore.
Prices for the steelmaking ingredient have risen about 30% since
August, helping the company’s share price hit a new record high in
Sydney on Friday.
“Investors certainly note the turnover, but in terms of what’s driving
earnings and free cash flow and dividend prospects — it’s the iron ore
price,” UBS Group AG analyst Lachlan Shaw said in a phone interview.
“It’s how their whole business is performing, and they’re performing
really well.”
While Fortescue in November approved $750 million of investments in an
initial slate of three clean energy projects, including a $550 million
electrolyzer and hydrogen facility in Arizona, it’s yet to announce
final investment decisions for proposed developments in Brazil, Norway
and Kenya. This may also have helped ease investor concerns over a
splurge on projects, Shaw said.
After Gunner’s departure, Fortescue said in an emailed statement
Friday that the company respected “Michael’s decision, and his
personal reasons for making it, and wish him and his family well.”
(By Sybilla Gross)
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
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509 995 1879 cell, Pacific.
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