Andrew ‘Twiggy’ Forrest announces shock departure of CEO Elizabeth Gaines from Fortescue Metals

The head of one of Australia’s largest mining companies has announced their departure from the role.

The boss of Andrew “Twiggy” Forrest’s $60bn miner Fortescue Metals is standing aside as the company continues its transition to a green energy and resources group.

On Friday it was announced chief executive Elizabeth Gaines would leave the top job after nearly four years, but will remain on the board as a non-executive director.

She will lead the search for a replacement chief executive and continue to act as Fortescue’s “global green hydrogen brand ambassador”.

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Fortescue Metals chief executive Elizabeth Gaines is standing down. Picture: Colin Murty / The Australian

Fortescue said its transition from a pure play iron ore and future facing metals exploration group, to a vertically integrated green energy and resources company, had only been possible through Ms Gaines’ leadership.

“I look forward to continuing to work with the talented team across the business as we grow and diversify,” Ms Gaines said on Friday morning.

“My heartfelt thanks to everyone at Fortescue for their support of me during my time as CEO and I look forward to ensuring a successful handover to the board’s appointed successor and continuing as CEO until I subsequently transition to the non-executive director role.”

Ms Gaines joined Fortescue Metals as chief financial officer in 2013 – when shares were worth just over $3 – and was appointed boss of the company in February 2018.

Dr Forrest – who founded the company – is chairman and owns a controlling stake.

He said he had appointed consulting firm Egon Zehnder to identify a new CEO and other leaders with exceptional skills and global experience across heavy industry, manufacturing, and renewable energy.

But she will remain on the board.

Shares in Fortescue Metals dropped 2.3 per cent to a low of $17.83 immediately after Friday’s leadership announcement.

The share price of Fortescue Metals – as well as the value its major local rivals BHP and Rio Tinto – has taken a beating since reaching record highs back in August, with the drop matching a retreat in red-hot iron ore prices.

During that time, however, Fortescue has also ramped up its focus on green technology and renewables, with Dr Forrest announcing a series of high-profile hydrogen and renewable energy projects via wholly-owned subsidiary Fortescue Future Industries.

Fortescue on Friday said its push into the renewable space had resulted in the largest portfolio of green hydrogen, green ammonia, green iron ore, green iron and other green product developments, in the world.

Nonetheless, the company benefited hugely from soaring bulk metal prices during the early stages of the coronavirus pandemic, at one stage taking its market cap to $80bn.

The iron ore boom helped the company deliver record-breaking profits in FY20 and FY21 and hand shareholders a whopping dividend payment – including a $2.4bn parcel for Dr Forrest alone.

Originally published as Andrew ‘Twiggy’ Forrest announces shock departure of CEO Elizabeth Gaines from Fortescue Metals