Fortescue Metals Group has signed an agreement with Kumul Consolidated Holdings to gain access to Papua New Guinea’s (PNG) hydropower resources.
Under the agreement, Fortescue will work with Kumul to investigate the feasibility of potential hydropower development projects to support green industrial operations for global export and domestic consumption.
Fortescue subsidiary, Fortescue Future Industries is committed to green industry future and aims to work closely with the communities to establish training and long-term careers.
This is consistent with Fortescue’s record of delivering both capital growth and yield to shareholders, while sharing the benefits of sustainable development and employment with the communities it operates in.
Fortescue and Kumul will develop individual projects following the investigation, subject to the completion of feasibility studies and local approvals.
Ownership and project finance sources will be secured separately without recourse to Fortescue.
“Fortescue is committed to our strategic goals of ensuring balance sheet strength and flexibility, investing in the long-term sustainability of our core business while pursuing growth and development opportunities,” the company stated in an ASX announcement.
“Execution of studies and approach to capital investment will be consistent with Fortescue’s track record of developing multi billion dollar projects in the Pilbara, at an industry leading capital intensity.”