Fortescue Metals Group Limited (ASX: FMG) has just announced a win with a new appointment for FFI.
Fortescue Future Industries (FFI) is the segment of Fortescue that is aiming to decarbonise Fortescue’s operations and also help reduce emissions for a number of other industries.
Fortescue’s CFO coup
The Reserve Bank of Australia (RBA) deputy governor has announced that he is leaving his role to become FFI’s new chief financial officer (CFO).
Mr Debelle said that he will be leaving on 16 March 2022. He has been at the RBA for 25 years. One of the main things that he is proud of is the policy response to the impacts of COVID, helping Australia come through the crisis in a “strong position”
Mentioning the new role in a statement, he said:
I have often spoken about the opportunities for business to help address climate change. This new position gives me the opportunity to make a significant contribution in this area.
The Australian Financial Review commented that Mr Debelle was the most likely candidate to become the next governor of the RBA, perhaps as early as 2023. He was reappointed the deputy last year.
Management comments
The Fortescue Chair Andrew Forrest was quoted by the AFR:
Bringing in someone of Dr Debelle’s economic credibility goes to the heart of our vision for FFI. Not only are we committed to arresting climate change, we are also committed to creating economic growth, increasing jobs and growing our business profitability.
Dr Debelle with the leadership team, will drive the most optimal financial solutions for FFI’s vast technology and energy portfolio. This will be instrumental in Fortescue’s journey to become the best green hydrogen, energy and resources company in the world.
Final thoughts on this appointment by Fortescue
It’s an interesting hire by Fortescue Future Industries. I’m sure he will be a very capable individual, but his experience is central banking, rather than a commercial setting.
I think it raises the profile of FFI even more and increases the capabilities of FFI to get the finances sorted of the various potential large projects.
I’m not personally jumping on the Fortescue share price just yet – it’s already a sizeable position in my portfolio. I’m waiting to buy more for when the iron ore price is lower, or when the Fortescue share price is a bit lower. However, with the Fortescue share price close to $18 and the iron price being solid right now, it could be a good time to start a long-term position.
