Fortescue energy boss Mark Hutchinson exits as Andrew Forrest rings in change
Two of Fortescue’s top executives will leave as part of an overhaul of the miner as it juggles iron ore growth with ambitions to build a major clean energy arm.
Fortescue has triggered a major leadership and strategy overhaul with two of its top executives to depart and a fledgling bet on renewables and hydrogen now under separate oversight as it clings to hopes of becoming a viable force in green energy.
Following inquiries on Thursday by The Australian, Fortescue said its energy chief executive, Mark Hutchinson, would leave his role, and its chief operating officer, Shelley Robertson, would also depart.
Fortescue chief executive Dino Otranto will take on an expanded remit including its under-pressure hydrogen unit and global electrification interests, while former Argentina rugby international Gus Pichot, a close confidant of founder Andrew Forrest, has been promoted to chief executive of growth and energy. He was previously head of global growth.
The changes, announced an hour after the shock exit of Rio Tinto boss Jakob Stausholm, were the latest shake-up in the Fortescue empire after several volatile years since the company announced in 2020 it would transform into a green energy giant.
Dr Forrest said Mr Hutchinson, who has run the energy division since August 2022, had made his own call to leave the miner ahead of his 65th birthday.
“Hutch retires at a time of his choosing with the full support of the board, having encouraged a successor which is exactly suited to the turbulent but highly replete with opportune times we’re going into,” Dr Forrest said on a media call.
Mr Pichot will start his new role on July 1, while Mr Hutchinson will serve as a senior adviser to the board for the next year with a focus on global marketing.
Ms Robertson, a former Mineral Resources executive, was Fortescue’s chief operating officer for 11 months and has retired to pursue non-executive director opportunities, according to a company statement.
Major management changes at the company are not new. But they have invited questions over corporate strategy and whether the company can deliver on an ambitious green pivot from its mainstay iron ore business.
In September 2023, Fortescue’s chief executive Fiona Hick and finance boss Christine Morris both exited, along with Fortescue Future Industries director Guy Debelle, a former Reserve Bank deputy governor.
Mr Hutchinson at the time said institutional investors told the company’s new leadership they “understand” the reasons for the extraordinary executive chaos. Dr Forrest’s stated goal is building infrastructure capable of supporting 15 million tonnes of green hydrogen production per year by 2030.
Fortescue had previously turned over at least a dozen members of its leadership team in the prior two years, and Mr Hutchinson admitted the movement in its energy arm – formerly called Fortescue Future Industries and now known as Fortescue Energy – had been substantial.
Dr Forrest last year abandoned his ambitious green hydrogen targets in a major business backdown, with hundreds of jobs cut after the iron ore mogul pulled back from his 2030 green hydrogen goal.
Mr Otranto and Mr Hutchinson said last year an exodus of staff was due to a cultural misalignment and not an indication of underlying woes.
Fortescue has set a goal of net zero emissions by 2030 with $US6.2bn ($9.6bn) set aside to reach the decarbonisation target.
Dr Forrest said at the last Fortescue annual general meeting the company wanted help in the form of approvals and infrastructure to reach its “real-zero” decarbonisation target, which involves using no fossil fuels or offsets in its Scope 1 and 2 emissions profiles.
The company’s ambition to become a dominant global player in green hydrogen has been delayed amid technology challenges and tepid demand from buyers.
Fortescue this month laid off about 90 staff working on its green hydrogen project, spread across its Queensland electrolyser facility and a hydrogen lab in Western Australia, in a fresh blow to hopes the nascent industry could eventually rival Australia’s gas export sector for size.
Fortescue is relying on technology breakthroughs as it contemplates building a commercial-scale green iron plant in the Pilbara with the aim of boosting low-grade hematite supplies to high-grade green iron production to compete with output from Guinea and Brazil.
The miner is aiming to capitalise on demand for zero emission energy sources, but there is broad concern about the capacity of many countries to meet emissions targets.
More Coverage
MA Financial makes retail splash with IPGeneration funds buy
The listed company is buying a retail property platform at a time when the sector is in a sweet spot.
Clive’s head on a crypto coin no guarantee of success
The unknown founders of a memecoin bearing the image of Clive Palmer thought, wrongly, they would make a motza on the back of the mining billionaire’s election advertising splurge.