“There’s no lack of ambition for progress in our iron ore enterprise. However if you take a look at the dimensions of the inexperienced vitality transition, it’s not unreasonable to suppose that in the end renewable vitality will in all probability outscale our iron ore enterprise considerably,” she instructed the Reuters World Markets Discussion board.
“I feel we’ll see renewable vitality play a really massive a part of our general earnings sooner or later.”
Final 12 months, the Perth-based miner mentioned it could spend $6.2 billion to get rid of the usage of fossil fuels and obtain “actual zero terrestrial emissions” throughout its iron ore operations by the top of the last decade.
“There’s a view that companies are doing this only for ESG causes, nevertheless it’s additionally a sensible factor to do as a result of the economics completely stack up,” Gaines mentioned.
The world’s fourth-largest iron ore producer has several projects lined up because it seems to quickly develop know-how to supply inexperienced hydrogen, transitioning from a pure-play iron ore producer to a inexperienced vitality agency.
The miner’s Australian renewable vitality tasks have been “very shut” to a closing funding determination, Gaines mentioned, including that one of many home tasks would seemingly be the primary to achieve approval from the board.
(Reporting by Divya Chowdhury in Davos and Anisha Sircar in Bengaluru; Modifying by Alex Richardson)
