Australian mining billionaire Andrew Forrest, founder and executive chairman of iron ore giant Fortescue, used his keynote speech at the opening of Bauma in Munich to issue a provocative challenge to the global construction and mining industry.
Forrest took aim at industry leaders reluctant to embrace green technology, while urging immediate action on climate change. “Our oceans are heating up at an alarming rate,” warned Forrest, who holds a PhD in marine ecology. “The climate is not listening at all to pronouncements from the White House or tariffs. It’s just escalating. And ladies and gentlemen, it needs us to take a stand.”
But his argument for decarbonization was not purely environmental, he also declared that a tipping point has now been reach which means that companies clinging to fossil fuels will miss “the greatest commercial opportunity that has ever existed. We’re not here to be altruistic. We’re not here to be philanthropic. We’ve got to pay the wage. We’re going to do things because it’s good business.”
Forrest revealed previously undisclosed data showing that Fortescue’s renewable energy technologies can deliver power at capital costs of “$2-3 billion per gigawatt” with operating costs between “$15-40 per megawatt,” making them competitive with both LNG and nuclear energy. “I just know, therefore, that we’re going to compete now with oil and gas, with nuclear, quite easily.”
In blunt assessment of the political landscape Forrest referenced US President Donald Trump’s “drill, baby, drill” mantra, countering with his own: “Build, baby build. That’s what construction does best. Donald Trump will hate it, but it will be fully green.”
He described the economic realities of the power transition making fossil fuels looking as good as “burning sticks and logs.” Continuing: “It will be lower cost than oil and gas. And it is coming your way.”
Forrest also revealed that he has imposed a dramatic deadline on his own company’s mining operations: “By 2029 I’m going to switch them off. If they’re still running on fossil fuel, those plants are going to go black, those people are not going to be able to work.”
Forrest is rolling out not only zero-emissions vehicles but also zero-emissions power production to support them. Critical of ‘Net’ Zero goals he encouraged the industry to instead focus on Real Zero emissions with no confusing and hard-to-verify offset calculations.
Fortescue, one of the world’s largest iron ore producers, has committed $3 billion to green mining vehicles and is developing technologies including hydrogen production, battery systems, and zero-emission shipping and railways.
