Australia’s Fortescue has secured a 14.2 billion Chinese yuan ($1.98 billion) syndicated loan to accelerate its decarbonisation agenda, weeks after shelving green hydrogen projects in the United States and Australia.
The world’s fourth-largest iron ore producer is reshaping its clean energy portfolio amid shifting global policy priorities, including a pullback on green energy investment by the United States under the Trump administration. In July, Fortescue announced the closure of its hydrogen ventures in Arizona and Queensland, shortly after its billionaire founder and chairman, Andrew Forrest, joined Australian Prime Minister Anthony Albanese on a visit to China.
On Friday, Forrest — widely known as “Twiggy” — praised China’s industrial capacity, innovation, and commitment to green technology investment, highlighting growing collaboration between the miner and Chinese institutions.
“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,” Forrest said in a statement.
The five-year facility, carrying a fixed annual interest rate of 3.8%, is supported by major Chinese, Australian, and international lenders, including Bank of China and the Industrial and Commercial Bank of China (ICBC). Fortescue said it is the first such financing for an Australian company where the use of proceeds is unrestricted.
According to the company, the funds will be directed towards general corporate purposes and its decarbonisation initiatives, reinforcing its long-standing financial ties with Chinese partners and creating new avenues for cooperation.
