Since being established in 2003, Fortescue Metals Group (Fortescue) has discovered and developed major iron ore deposits and constructed some of the most significant mines in the world. Could you underline the significance of the A$3.7 billion Iron Bridge Magnetite Project and the A$1.8 billion Eliwana mine to our readers?

Fortescue has a proud track record of safely and successfully developing and operating iron ore projects in the Pilbara, having built or commenced building five iron ore mines in less than 15 years. Development of the Eliwana Project will maintain Fortescue’s low cost status, providing us with greater flexibility to capitalize on market dynamics while maintaining a minimum 170 million tonnes per annum (mt/y) production rate over 20 years. The Eliwana Project will build on Fortescue’s development and construction capability, utilizing the latest technology, autonomous trucks and design efficiency with first ore on train scheduled for December 2020. The Eliwana Project underpins the long-term production of the 60.1% Fe product West Pilbara Fines (WPF) that was introduced to the market in December 2018 with volumes growing to 40 mt/y once Eliwana is operational. Iron Bridge will be one of the most cost and energy efficient producers of magnetite ore globally, and the development of this project will leverage Fortescue’s integrated mine-to-port infrastructure with delivery of first ore expected in the first half of calendar year 2022.

Together, the Iron Bridge and Eliwana projects increase the average iron content of our ores, providing Fortescue with the ability to deliver the majority of our products at greater than 60% Fe. We are confident these projects will deliver growth in earnings and cash flow, resulting in enhanced returns to our shareholders through all market cycles. These projects are important to Fortescue and the State of Western Australia, creating up to 5,000 jobs during construction, 1,400 full time site positions once operational and the continued flow of benefits to our communities and the State and National economy

As a mining major with a clear focus on iron ore, have you strategically identified a second commodity to diversify into?

Fortescue is building on its world-class exploration expertise, operational reputation and skills and capability of its people to drive future growth through product diversification and asset development with a focus on capitalizing on the growing demand for commodities to supply the electric vehicle and battery markets. Fortescue has been assessing exploration and development opportunities in Ecuador since 2017, and 32 exploration concessions have been awarded. Drilling on targets prospective for copper commenced at Fortescue’s Santa Ana concessions in Ecuador in April 2019. In November 2018, Fortescue acquired an exploration company in Argentina for US$2 million, which provides access to 48 tenements covering a large greenfield landholding of approximately 2.930 km² in the Argentinian Province of San Juan, which is prospective for copper-gold. Initial fieldwork commenced in January 2019 in a project area approximately 180 km from San Juan.

Fortescue has also logged 64 applications in Colombia for exploration concessions in areas which are prospective for copper and applied for 21 tenements in Portugal, with these tenements expected to progress to grant later in 2019. Early stage exploration has commenced, with the tenements prospective for lithium.

Fortescue has been a pioneer in the adoption of new technologies, and the Iron Bridge Project will include automated haulage and drilling systems. How is ‘Mining 4.0’ positively impacting Fortescue?

Fortescue was the first company in the world to deploy Cat autonomous haulage on a commercial scale when autonomous haulage trucks (AHS) began operating at the Solomon Hub in 2012. Today, Fortescue’s AHS deployment is the largest mining technology program in the industry. The conversion of Fortescue’s fleet to autonomy across all its mine sites in the Pilbara will see 175 trucks fitted with AHS by mid-2020. Fortescue was also the first operation in Western Australia to control a railway from outside the region when it opened its Train Control Centre in Perth in 2009. Today, the Integrated Operations Centre (IOC) in Perth includes mine planning and mine control teams across our mining operations and utilises the latest technology to ensure improved safety, reliability and efficiency of the operation.

Fortescue’s focus on innovation and technology ensures that we enhance productivity and efficiency to maintain our low cost status, enabling optimization of margins through all market cycles. Looking forward, our innovation agenda will continue to advance to support our future growth and development.

The average number of workers in the WA minerals sector in 2018 was 120,437, an increase of nearly 9,000 from 2017, but a talent shortage is impacting the industry. How are you addressing this challenge?

While there are key areas where we are seeing skills shortages across Australia, Fortescue has a unique, differentiated culture, and we are proud to be able to attract and retain a talented and diverse group of people across the business. Fortescue strives to be an employer of choice and implements programs and incentives to attract, develop, challenge and retain its people. We have award winning training programs in place to ensure a sustainable pipeline of talent and, importantly, to give our people long-term career opportunities. 3,000 Fortescue team members have been trained to work with autonomous haulage, from driving LVs in autonomous zones through to operating the AHS system. This ensures Fortescue remains relevant and transformational and leads to higher skilled workers and better jobs. Significantly, there have been no redundancies as a result of the rollout of autonomous haulage across the Chichester Hub.

We are committed to having a diverse workforce and to ensuring as many women as possible have an opportunity to participate and make a strong contribution to Australian mining. We have also implemented a range of practical initiatives to support both men and women in the workplace, such as job flexibility and childcare available through the Fortescue Family Room in Perth and the In Home Childcare program in Port Hedland.

How would you like Fortescue to be perceived by the industry and general public?

Fortescue was founded by our Chairman and Founder, Andrew Forrest AO, with the vision that communities should benefit from our growth and development. We are proud to work with the community and Traditional Custodians to provide training for guaranteed jobs, employment and business opportunities for Aboriginal people and build the towns of the Pilbara into vibrant communities. Fortescue is a true success story in the industry, founded with a unique culture and delivering long-term, sustainable returns to key stakeholders, communities and shareholders.