Fortescue Hits Record Iron Ore Shipments, Cancels Green Hydrogen Projects

Australia’s Fortescue has reported record fourth-quarter iron ore shipments, reaching 55.2 million metric tons, up from 53.7 million a year earlier and surpassing Visible Alpha’s 52.5 million-ton forecast. This performance pushed full-year shipments to 198.4 million tons, achieving the top end of its 190–200 million-ton guidance for fiscal 2025.

The Perth-based miner also announced it will abandon its U.S. and Australian green hydrogen projects, including the Arizona Hydrogen Project and the PEM50 Project in Gladstone, following a strategic review. The company plans to assess options for repurposing related land and assets.

As a result of the cancellations, Fortescue expects a preliminary pre-tax writedown of about $150 million in second-half results, tied to expenditures on the PEM50 Project, electrolyser equipment, and engineering costs.

Looking ahead, Fortescue forecasts fiscal 2026 shipments between 195 million and 205 million metric tons, including 10–12 million tons from its Iron Bridge magnetite project in Western Australia’s Pilbara region. Metals capital expenditure for the same period is projected at $3.3–$4 billion.

Fortescue’s record output comes amid strong competition from major rivals. BHP recently posted record copper output, while Rio Tinto reported its strongest second-quarter iron ore production since 2018.

The announcement underscores Fortescue’s pivot back to its core iron ore business as it scales back ambitious green hydrogen plans amid shifting market dynamics.