Fortescue Metals Group Ltd. is being hit by an executive exodus, as the world’s fourth-largest iron ore miner seeks to become a major new-energy player under a transition championed by its chairman and founder, billionaire Andrew Forrest.
(Bloomberg) — Fortescue Metals Group Ltd. is being hit by an executive exodus, as the world’s fourth-largest iron ore miner seeks to become a major new-energy player under a transition championed by its chairman and founder, billionaire Andrew Forrest.
Former Reserve Bank of Australia deputy governor Guy Debelle on Friday became the third executive to resign this week. His exit comes days after Fiona Hick, chief executive officer of the iron ore division, resigned after less than six months in the role, while on Thursday evening the Perth-based company announced Christine Morris was departing as metals chief financial officer.
Earlier this week, Fortescue announced an 11% fall in full-year profit, reflecting the struggles of iron ore miners as China’s economic slowdown weighs on demand for the steelmaking material. The company aspires to become a major producer of green hydrogen and other clean-energy technologies under Forrest, who is Australia’s richest person.
Calls and emails to a Fortescue spokesperson seeking on-the-record comment, including whether the departure of Debelle and other executives were linked to the company’s green transition, weren’t immediately answered. The company’s shares fell as much as 5.6% in Sydney on Friday.
On Wednesday, Forrest was quoted by the Sydney Morning Herald as telling a conference in Perth that regarding Hick’s departure, “there is a difference between where they’re going and the whole mission of the company before anyone joined. ” He added: “You might want to take it a different direction, like put a handbrake on going green.”
The recent resignations at Fortescue may be due to “disagreements with the founder and chairman over a foray into green energy,” Bloomberg Intelligence analysts including Mohsen Crofts said. “The initiative will expend $1.2 billion in fiscal 2024, and its vehicle fleet decarbonization will cost $6.2 billion over a decade. The departures raise concerns over the viability of these strategies given their uncertain prospects for an economic return.”
Debelle said by phone on Friday that he had resigned from the board of the company’s energy arm and was “moving on to different opportunities.” He will join the board of critical minerals company Tivan Ltd. from Monday, that company said in a separate statement.
Read More: Fortescue CFO Morris Departs, Names Apple Paget as Acting CFO
Debelle worked at the central bank for 25 years. After joining Fortescue last year, he resigned from senior management after being involved in a serious cycling accident in August, and took up a position on the energy arm’s board.
Hick was replaced immediately by Dino Otranto, the company’s chief operating officer for iron ore. Morris’s role has been taken by Apple Paget in an acting capacity.
–With assistance from Swati Pandey.
(Updates with Bloomberg Intelligence comment in fifth paragraph)
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