Mark Hutchinson quits as Andrew Forrest’s Fortescue Energy boss

Fortescue Energy boss Mark Hutchinson has quit. Picture: SoCo Studios

Call it inevitable, call it what you will, but Fortescue Energy boss Mark Hutchinson has finally left the building.

Hutchinson was left a lame duck co-CEO of the mining giant, as Andrew Forrest finally embraced the reality that merely setting stretch goals at Fortescue cannot make green hydrogen cheap enough to find any customers for the product.

Instead the boss of GE’s European operations was left with the unenviable task of turning up to Fortescue’s quarterly analyst calls to tell the investors that the company had still not managed to make any final investment decisions on a green energy project, despite years of promises.

Fortescue was at pains on Thursday to emphasise the nearness of Hutchinson’s 65th birthday, telling reporters its energy boss has always said he wants to retire at that age.

In truth, the writing has been on the wall for some time. Not only is there Fortescue’s pivot to green iron, but the great retreat from green hydrogen gave him almost nothing to do.

In the last week Fortescue has put three new directors in at UK outpost Fortescue Zero, run by Hutchinson for a period. The company sent metals boss Dino Otranto, the big winner from Thursday’s executive reshuffle, out to defend the company’s retreat from its electrolyser manufacturing facility in Gladstone.

And Hutchinson was a notable absence from the Fortescue contingent watching Forrest deliver an address to a WA mining conference on Wednesday – which otherwise included Otranto and most of the company’s board.

If there’s one thing Forrest loves, it’s a public display of loyalty.

But the Fortescue board also met this week and signed off on Hutchinson’s departure, so we’re guessing he might not have been in the mood to attend.

There’s no criticism of Hutchinson intended here, to be clear.

He was faced with the impossible task of turning billions and billions of dollars worth of green hydrogen promises into definitive feasibility studies that you can take to the board of a public company and expect to get funding. Physics and market reality says that was an impossible job.

Less discussed will be the departure of Fortescue chief operating officer Shelley Robertson, who joined the company from Chris Ellison’s Mineral Resources. Working back-to-back for Ellison and Forrest would test the patience of a saint, let’s be clear.

But Robertson’s departure also highlights the difficulty Fortescue has had in holding on to senior women, despite the boasts of its founder. Former CEO Elizabeth Gaines remains on the board, but over the last few years Fortescue has seen the departure of a slew of senior female executives – Fiona Hicks, Julie Shuttleworth, Christine Morris, just to name a few.

And who emerges as the winner from the latest executive reshuffle?

Otranto, now in charge of Fortescue’s mining operations, as well as its global electrification and green steel projects. And former Argentine rugby star Gus Pichot, referred to internally as the Latin George Clooney. And not in a positive way.

Fortescue’s announcement of its executive changes came after The Australian put questions to the company about Hutchinson’s future. Margin Call is sure that’s just a coincidence.

But after years of turmoil at the major mining company, what’s really changed?

One last question. Fortescue’s announcement on Thursday made it clear Forrest remains as the company’s executive chairman. Forrest is 63.

Will he take Hutchinson’s lead and step down at 65? We’re betting not.