Fortescue’s Mark Barnaba on Iran, Rates and China

Summary

Fortescue Deputy Chairman Mark Barnaba discusses the impact of the Iran war on diesel costs, the RBA's expected rate hikes, China's negotiations over iron ore pricing, and Fortescue's ambitious plan to build a fully renewable energy grid to replace fossil fuels. The conversation highlights cost pressures on miners and Australia's inflationary environment.

• Fortescue imports nearly a billion litres of diesel annually, making it sensitive to fossil fuel price spikes.
• Mark Barnaba expects the RBA to hike rates next week and again later this year due to sticky inflation.
• China is asking for iron ore trade to use a China-based index and renminbi settlement.
• Fortescue is building a large-scale renewable energy grid to completely displace diesel and gas.
• The company targets real zero emissions without offsets, using solar, wind, battery storage, and AI.
• Fortescue is the lowest-cost iron ore producer among major peers, with marginal costs under $20/tonne.