Fortescue Metals Group has delivered a record first half FY26 iron ore shipment of 100.2 million tonnes, alongside key progress in decarbonisation and strategic copper acquisition.
- Record first half shipments of 100.2 million tonnes, up 3% year-on-year
- Delivered first large-scale battery energy storage system to support decarbonisation
- Entered binding agreement to acquire remaining 64% of Alta Copper
- Maintained strong safety performance with LSI of 160 and TRIFR of 1.5
- Net debt reduced to US$1.0 billion with cash balance of US$4.7 billion
Record Production Milestone
Fortescue Metals Group has marked a significant milestone with record iron ore shipments of 100.2 million tonnes in the first half of fiscal year 2026, representing a 3% increase compared to the same period last year. This achievement underscores the company’s operational resilience and efficiency, despite global market uncertainties. The second quarter alone saw shipments of 50.5 million tonnes, contributing to this historic half-year performance.
Operationally, Fortescue maintained a strong focus on safety, achieving a Leading Safety Index (LSI) of 160 and a Total Recordable Injury Frequency Rate (TRIFR) of 1.5, reflecting ongoing commitment to workplace wellbeing. The company also reported a slight increase in hematite unit costs to US$19.10 per wet metric tonne in Q2, influenced by higher diesel prices and currency fluctuations, yet overall cost guidance for the full year remains steady.
Strategic Growth and Copper Expansion
In a strategic move to diversify its portfolio, Fortescue entered into a binding agreement to acquire the remaining 64% stake in Alta Copper, a key player in Latin America’s copper sector. This acquisition aligns with Fortescue’s broader critical minerals strategy, aimed at expanding its footprint beyond iron ore into metals essential for the energy transition. The company’s growth ambitions are further supported by ongoing exploration activities across Argentina, Kazakhstan, and Canada.
Meanwhile, progress continues on the Belinga Iron Ore Project in Gabon, where a Presidential Taskforce has been established to accelerate planning and delivery of an integrated mine, rail, and port infrastructure. This initiative highlights Fortescue’s commitment to expanding its global resource base while fostering strong governmental partnerships.
Decarbonisation and Energy Innovation
Fortescue is also advancing its sustainability agenda with the delivery of its first large-scale battery energy storage system (BESS) at North Star Junction, boasting a capacity of 250 megawatt-hours. This installation is the initial phase of a planned 4-5 gigawatt-hour rollout designed to underpin the company’s decarbonisation efforts in the Pilbara region. Complementing this, the Cloudbreak Solar Farm continues to progress, with over 300,000 solar panels installed, and the electric mobile equipment fleet is expanding, including battery electric locomotives for rail operations.
These initiatives reflect Fortescue Zero’s broader vision to transform how mining operations are powered, integrating renewable energy, advanced transmission infrastructure, and electric fleets to reduce carbon emissions significantly over the coming years.
Financial Strength and Outlook
Financially, Fortescue remains robust with a cash balance of US$4.7 billion and net debt reduced to US$1.0 billion as of December 31, 2025. Capital expenditure for the quarter stood at US$759 million, supporting both operational growth and energy transition projects. The company reaffirmed its FY26 guidance for iron ore shipments between 195 and 205 million tonnes, hematite unit costs within US$17.50 to US$18.50 per wet metric tonne, and metals capital expenditure ranging from US$3.3 to US$4.0 billion.
Fortescue’s disciplined capital allocation and strategic investments position it well to navigate evolving market dynamics while advancing its sustainability and growth objectives.
Bottom Line?
Fortescue’s record shipments and bold decarbonisation steps set the stage for a transformative year ahead.
Questions in the middle?
- How will the Alta Copper acquisition impact Fortescue’s earnings and project timelines?
- What are the expected operational and cost benefits from the expanding battery energy storage rollout?
- How quickly can the Belinga Iron Ore Project progress under the new Presidential Taskforce?