Iron ore price weakens as Australia flags return to sub-$100 prices
Futures dropped for a fourth day in Singapore, to trade about 3% lower for the week.
Fortescue Metals Group (ASX: FMG) added a new name to its list of fleeing top executives on Thursday with the exit of the chief financial officer of its metals division, Christine Morris, less than three months after being appointed to the role.
The announcement comes only three days after the Australian miner said the CEO of its metals division, Fiona Hick, was leaving the position she had assumed in February this year.
Morris had replaced Ian Wells, who resigned in early 2023 after serving as the iron ore giant’s finance boss since 2018. Apple Paget, group manager of finance and tax, is now the acting CFO for metals, the miner said.
Fortescue, which is expanding into green hydrogen, restructured the business this year by dividing it into a metals division and an energy division. The CEOs of each unit reports to founder and executive chairman Andrew Forrest and the company’s board.
It was precisely the company’s green push that, according to Forrester, triggered Hick’s exit.
“What we have now is literally a galloping herd of people who want to see this company go green. So if you want to step outside that, you’re given a choice,” he told reporters on the sidelines of an event held in Perth Wednesday and Thursday. “So all I’d say is that Fiona was given a choice, and she made her own decision”.
According to The Australian Financial Review, Hick was a strong supporter of decarbonizing Fortescue’s operations, saying in May she hoped the company would set an example for other producers.
Fortescue, the world’s fourth-largest iron ore miner, has set a self-imposed deadline to reach net zero scope 1 and 2 emissions by 2030. It was also the first major miner to commit to achieving net zero scope 3 emissions, those produced by its customers including steel makers, by 2040.
The company reported this week a $726 million impairment charge on its new Iron Bridge magnetite mine — and its lowest annual profit since 2020.
