FMG - Fortescue Ltd

[Value Collector]

Here is a video showing how roofing steel is made from these rolls of steel.

Would there be a market for colour bond roofs and fences that are zero carbon? Could it be mandated one day to use zero carbon steel for these sorts of products?

 

[divs4ever]

Here is a video showing how roofing steel is made from these rolls of steel.

Would there be a market for colour bond roofs and fences that are zero carbon? Could it be mandated one day to use zero carbon steel for these sorts of products?

mandated ??

remember the WEF wants us to own NOTHING , and rent EVERYTHING ( even clothes and kitchen-ware )

of course if the WEF dream fails , can zero-carbon be cost competitive , if so it is more likely to be made locally ( within the state/nation )

 

[SirRumpole]

Here is a video showing how roofing steel is made from these rolls of steel.

Would there be a market for colour bond roofs and fences that are zero carbon? Could it be mandated one day to use zero carbon steel for these sorts of products?

Is

Here is a video showing how roofing steel is made from these rolls of steel.

Would there be a market for colour bond roofs and fences that are zero carbon? Could it be mandated one day to use zero carbon steel for these sorts of products?

What is the cost comparison between green steel and "normal" steel ?
From what I read green steel is considerably more expensive.

 

[Value Collector]

Is

What is the cost comparison between green steel and "normal" steel ?
From what I read green steel is considerably more expensive.

Just like most things it’s going to be more expensive at the start, because currently hydrogen is cheaper than coal and it would be produced at relatively low scale.

However as the cost of hydrogen production drops, and cost of coal production rises they may become equal.

FMG doesn’t rely on green steel becoming a thing, it has a super profitable business in just supplying the Iron Ore into either production method. But if green steel does become a thing, and FMG have a large hydrogen business, it could end up being an interesting value adding business to divert some of their Iron Ore into.

Not only could it be a good business in itself, but it would also help reduce their Iron Ore businesses reliance on China which some people feel is a risk.

 

[Value Collector]

mandated ??

remember the WEF wants us to own NOTHING , and rent EVERYTHING ( even clothes and kitchen-ware )

of course if the WEF dream fails , can zero-carbon be cost competitive , if so it is more likely to be made locally ( within the state/nation )

Yeah, mandated. You know how countries all around the globe banned use of fuel containing lead, it’s possible that over the next 20 years laws against carbon emissions are going to continue to get stricter.

Even if Green steel proved to be 20% more expensive, if it’s competitors are banned or hit with punitive taxes that 20% difference doesn’t matter.

But like anything, scale reduces costs. And it’s not impossible that green steel will become cheaper than coal.

 

[dat111]

but Australia is NOT the only steel producer , and i can see places where plain old 'green steel ' will not be a useful selling point

for example what is the cost v. benefit analysis of 'green steel' in a baked beans can compared to full-on 'dirty steel ' produced in India

( 'dirty steel' equals coal-fired power plants , fossil fuels for transport , under-age labour , etc etc )

does the consumer pay an extra 20 cents a can , to feel good about the can providence ?

It all depends upon how the governement of these countries manage their economies... either mandating that green steel be used or what type of tax reduction or give backs are they willing to provide if the company uses green technology.

 

[divs4ever]

government intervention has got us where we are ( in the economy )

 

[Garpal Gumnut]

And now just to bring the FMG thread, back to FMG, apologies to regular posters on FMG and their brainfarts.

From the AFR.

FMG Partner Flees FMG Hydrogen Outfit.

gg

 

[basilio]

Last quarter production reports just came in. Record sales of ore. 49m Tones. A good price of $87 US average.

Record quarter delivers best ever half year operating performance
Fortescue Executive Chairman, Dr Andrew Forrest AO, said, “The Fortescue team delivered our highest ever December quarterly shipments of 49.4 million tonnes, our best ever half year, grew the mineral and green energy business globally, strengthened our balance sheet, kept costs low, all while maintaining our excellent safety performance.

“We are now nearing the 200 million tonne annualised rate in our iron ore business even before we commission Iron Bridge. Our Company has never performed better on the mining, exploration, green hydrogen and green energy development front, while leading the world as the first heavy industry company to achieve real zero with a fully costed plan. Fortescue will step beyond fossil fuels this decade, saving shareholders approximately US$1 billion a year and setting the global stage for all environmentally responsible companies to follow.

“Demand for Fortescue’s suite of iron ore products remains strong and our entry into the higher-grade segment of the market has been well received, with significant interest in the Iron Bridge magnetite concentrate. This is further supported by the Belinga Project in Gabon, with engagement rapidly advancing and very positive geological assessments from ground mineral surveys. The initial drilling program is expected to commence in March 2023. We also continue to develop our rare earths division as announced at the 2022 Annual General Meeting

Summary
• Total Recordable Injury Frequency Rate (TRIFR) of 1.8 at 31 December 2022, consistent with December 2021.

• Iron ore shipments of 49.4 million tonnes (mt) in Q2 FY23 contributed to shipments of 96.9mt for H1 FY23, 4% higher than H1 FY22 and a record for a half year.

• Average revenue of US$87/dry metric tonne (dmt), realising 88% of the average Platts 62% CFR Index for the quarter.

• C1 cost of US$17.17/wet metric tonne (wmt), 3% lower than the previous quarter.

• Cash increased to US$4.0 billion (net debt of US$2.1 billion) at 31 December 2022, after capital expenditure of US$728 million in the quarter.

• Commencement of civil works on the installation of the solar farm as part of the Pilbara Energy Connect program of works.

• Fortescue Future Industries (FFI) established a framework agreement with the Government of Kenya to develop green ammonia and green fertiliser facilities.

• Announced the appointment of experienced executive Fiona Hick as Chief Executive Officer of Fortescue Metals.

• Guidance for FY23 shipments is maintained at 187 - 192mt, inclusive of Iron Bridge shipments of less than 1mt (previously 1mt).

• Guidance for FY23 C1 cost and capital expenditure remain unchanged.

December 2022 Quarterly Production Report (PDF 288.6 KB)

 

[basilio]

And now just to bring the FMG thread, back to FMG, apologies to regular posters on FMG and their brainfarts.

From the AFR.

FMG Partner Flees FMG Hydrogen Outfit.
View attachment 152189

gg

Certainly food for thought. It will be interesting to see how the newer options for producing hydrogen stack up. FMG has a partnership with a South Australian company that is developing a radical new and cheaper process.

Certainly wouldn't be up for commercial production in the short term but with this news Twiggy will be moving very quickly to see how it can work.

Sparc Green Hydrogen - Sparc Technologies

sparctechnologies.com.au

 

[basilio]

Interestingly Plug Power is not doing very well at the moment. I suspect the decision to pull the plug on the FMG project could be because of their current financial position. The investment of $116m into the project is probably too risky at this time.

Plug Power: Brace For Chaos (NASDAQ:PLUG)

Plug Power sent shockwaves through the market with its drastically downgraded FY22 projections. See why we believe PLUG stock remains a speculative position.

seekingalpha.com

 

[Garpal Gumnut]

Last quarter production reports just came in. Record sales of ore. 49m Tones. A good price of $87 US average.

Record quarter delivers best ever half year operating performance
Fortescue Executive Chairman, Dr Andrew Forrest AO, said, “The Fortescue team delivered our highest ever December quarterly shipments of 49.4 million tonnes, our best ever half year, grew the mineral and green energy business globally, strengthened our balance sheet, kept costs low, all while maintaining our excellent safety performance.

“We are now nearing the 200 million tonne annualised rate in our iron ore business even before we commission Iron Bridge. Our Company has never performed better on the mining, exploration, green hydrogen and green energy development front, while leading the world as the first heavy industry company to achieve real zero with a fully costed plan. Fortescue will step beyond fossil fuels this decade, saving shareholders approximately US$1 billion a year and setting the global stage for all environmentally responsible companies to follow.

“Demand for Fortescue’s suite of iron ore products remains strong and our entry into the higher-grade segment of the market has been well received, with significant interest in the Iron Bridge magnetite concentrate. This is further supported by the Belinga Project in Gabon, with engagement rapidly advancing and very positive geological assessments from ground mineral surveys. The initial drilling program is expected to commence in March 2023. We also continue to develop our rare earths division as announced at the 2022 Annual General Meeting

Summary
• Total Recordable Injury Frequency Rate (TRIFR) of 1.8 at 31 December 2022, consistent with December 2021.

• Iron ore shipments of 49.4 million tonnes (mt) in Q2 FY23 contributed to shipments of 96.9mt for H1 FY23, 4% higher than H1 FY22 and a record for a half year.

• Average revenue of US$87/dry metric tonne (dmt), realising 88% of the average Platts 62% CFR Index for the quarter.

• C1 cost of US$17.17/wet metric tonne (wmt), 3% lower than the previous quarter.

• Cash increased to US$4.0 billion (net debt of US$2.1 billion) at 31 December 2022, after capital expenditure of US$728 million in the quarter.

• Commencement of civil works on the installation of the solar farm as part of the Pilbara Energy Connect program of works.

• Fortescue Future Industries (FFI) established a framework agreement with the Government of Kenya to develop green ammonia and green fertiliser facilities.

• Announced the appointment of experienced executive Fiona Hick as Chief Executive Officer of Fortescue Metals.

• Guidance for FY23 shipments is maintained at 187 - 192mt, inclusive of Iron Bridge shipments of less than 1mt (previously 1mt).

• Guidance for FY23 C1 cost and capital expenditure remain unchanged.

View attachment 152198 December 2022 Quarterly Production Report (PDF 288.6 KB)

Thanks @basilio . Do you know what percentage of FMG iron ore earnings is going in to the Black Hole of the Gladstone FFI Hydrogen outfit.

It's all very well making a motza out of iron but if it's disappearing in to a scheme whose executives are fleeing by the day and whose Americano Amigo partners are disappearing, one wonders what the bottom line will look like for FMG this financial year.

gg

 

[basilio]

Thanks @basilio . Do you know what percentage of FMG iron ore earnings is going in to the Black Hole of the Gladstone FFI Hydrogen outfit.

It's all very well making a motza out of iron but if it's disappearing in to a scheme whose executives are fleeing by the day and whose Americano Amigo partners are disappearing, one wonders what the bottom line will look like for FMG this financial year.

gg

10% GG. Same as it always was. In fact my understanding is that FFI has not spent its budget to date. Lot's of trips to find partners and projects but they havn't sunk a huge amount into development.

I understand the FMG capital account has invested heavily in new solar investments, electrification of trains and trucks but these projects directly reduce operating costs and are regarded as FMG capital investments in its iron ore operations. I believe the overall budget for de carbonizing the FMG operation is $6b. When fully completed by 2030 this will reduce operating costs by $1B a year.

Climate Change and Energy | Fortescue Metals Group Ltd

www.fmgl.com.au

 

[Value Collector]

10% GG. Same as it always was. In fact my understanding is that FFI has not spent its budget to date. Lot's of trips to find partners and projects but they havn't sunk a huge amount into development.

I understand the FMG capital account has invested heavily in new solar investments, electrification of trains and trucks but these projects directly reduce operating costs and are regarded as FMG capital investments in its iron ore operations. I believe the overall budget for de carbonizing the FMG operation is $6b. When fully completed by 2030 this will reduce operating costs by $1B a year.

Climate Change and Energy | Fortescue Metals Group Ltd

www.fmgl.com.au

Just to clarify, 10% of fortescues earnings are used to fund all of the FFI business, the Gladstone project is a small subset of that, as you can see by Plug Powers 50% contribution only being $167 M, which a few days earnings for fortescues Iron Ore business.

 

[qldfrog]

Fortescue partner pulls plug on electrolyser factory

US hydrogen giant Plug Power no longer wants to partner Fortescue in a Gladstone electrolyser factory because the economics aren’t attractive enough.

www.afr.com

Reality, sciences and facts are such a bitch ..so unfair ?

 

[frugal.rock]

Would there be a market for colour bond roofs and fences that are zero carbon?

Yes, of course.
However that discussion belongs in the Bluescope Steel thread as you have mentioned their proprietary product.
?

BSL - Bluescope Steel

@peter2 , on a stock so easily affected by a Trump speech or a BOC decision, do you take this into account or do you purely look at it from a pure chartist point of view? Not bothering if it produces steel in Australia, could be selling sushi in Norway who cares attitude? This is where i find it...

www.aussiestockforums.com

 

[Value Collector]

Yes, of course.
However that discussion belongs in the Bluescope Steel thread as you have mentioned their proprietary product.
?

BSL - Bluescope Steel

@peter2 , on a stock so easily affected by a Trump speech or a BOC decision, do you take this into account or do you purely look at it from a pure chartist point of view? Not bothering if it produces steel in Australia, could be selling sushi in Norway who cares attitude? This is where i find it...

www.aussiestockforums.com

Do Bluescope make zero carbon steel?

No, they don’t (atleast not yet), so they would be required to buy their raw material eg Iron or Steel, from a mill that makes zero carbon Iron or steel, they then could use their proprietary coatings and brand to turn that zero carbon steel into colour bond roofing sheets.

 

[Value Collector]

@frugal.rock

I guess the answer is no, so bluescope might indeed be a customer of FMG one day using their green steel to produce colour bond.

 

[basilio]

FMG announces signing of mining convention to start the Belinga iron ore project . They are looking to moving 2 million tons of ore in 2023. They havn't forgotten their core business. FFI will be involved in developing the renewable energy component.

7 February 2023
MINING CONVENTION SIGNED FOR THE BELINGA IRON ORE PROJECT

• All legal, fiscal and regulatory regimes established for the rapid development of Belinga
• Early-stage exploration of Belinga shows similar grade and scale characteristics to Simandou at comparable stage
• The Convention facilitates first mining of ore in the second half of 2023.

Fortescue Metals Group Ltd (Fortescue, ASX: FMG), through its incorporated joint venture company Ivindo Iron SA (Ivindo Iron), has today signed the Mining Convention for the Belinga Iron Ore Project (Belinga Project) in Gabon with the Gabonese Republic. This will see first mining planned for the second half of calendar 2023 and open growth opportunities for Fortescue Metals and Fortescue Future Industries (FFI) throughout Africa.

Mining Convention Signed for the Belinga Iron Ore Project (PDF 176.2 KB)

 

[basilio]

More detail on the Belinga project.

It is not small beer by any means.

From Gabfest to Gabon for Fortescue - ShareCafe

It finally looks like Fortescue Metals Group has signed a deal to start the trial iron ore mining operation in Gabon that investors and observers have been expecting for some time.

www.sharecafe.com.au