Fortescue said on Friday it had secured a syndicated term loan facility worth 14.2 billion Chinese yuan ($1.98 billion) as the Australian miner looks to support its ambitious decarbonization plans.
The mining giant said at the end of July that it was scaling back and would scrap its green hydrogen projects locally and in the United States.
Fortescue had said it was assessing options to repurpose the assets and land for the Arizona Hydrogen Project and the PEM50 Project in Gladstone, Australia. It expects a preliminary pre-tax writedown of about $150 million in its second-half results, linked to spending on those businesses.
In July 2024, the miner said its Fortescue Energy unit was unlikely to meet the target of producing 15 million metric tons of green hydrogen by 2030.
Fortescue on Friday said the term loan facility had received participation from some leading Chinese, Australian and international lenders.
“As the United States steps back from investing in what will be the world’s greatest industry, China and Fortescue are advancing the green technology needed to lead the global green industrial revolution,” said Andrew Forrest, the company’s executive chairman.
The company is a major iron ore supplier to China.
($1 = 7.1810 Chinese yuan)
(By Rishav Chatterjee; Editing by Alan Barona)
