Fortescue Secures $2 Billion Chinese Loan to Fund Green Decarbonisation Plans

Australian iron ore miner Fortescue has secured a RMB 14.2 billion ($2 billion) renminbi-denominated syndicated loan from Chinese lenders to fund its decarbonisation agenda and general corporate purposes. Executive Chairman Andrew Forrest explicitly framed the deal as a response to the U.S. retreating from green technology investment.

The RMB syndicated term loan is described as the first of its kind by an Australian corporate. Fortescue has committed to invest over $6 billion to decarbonise its Pilbara iron ore operations in Western Australia, with a goal to achieve real zero Scope 1 and 2 terrestrial emissions by 2030 using green energy. The company ships more than 190 million tonnes of iron ore annually, primarily to China's steel industry, and will use the loan proceeds to advance partnerships with Chinese suppliers and clean technology providers.

The deal comes after Fortescue halted investment in its Arizona Green Hydrogen Project, citing a shift in U.S. policy priorities away from green energy. Forrest characterised the loan as a signal of what is possible when partners are aligned in ambition, framing China as a counterweight to U.S. policy reversal on clean energy. The transaction underscores shifting geopolitics in green finance, as Chinese institutions step into a void left by reduced U.S. public and private support for climate-focused investment.

Fortescue's aggressive decarbonisation timeline — real zero Scope 1 and 2 emissions by 2030 — is among the most ambitious set by a major mining company globally. The Chinese financing reflects the deepening of energy transition investment flows between resource exporters and large industrial consumers in Asia. For Indian steelmakers and mining companies, the deal illustrates an emerging model of green finance alliances with Chinese capital markets for hard-to-abate sector decarbonisation.

Key figure — $6 billion committed to decarbonise Pilbara operations