Fortescue has secured a loan of 14.2 billion yuan to support its decarbonization plans

Global mining company Fortescue secured a syndicated term loan of 14.2 billion yuan (approximately $2 billion) for its “green” energy initiatives.

Leading Chinese, Australian, and international lenders participated in the financing.

This is the first syndicated loan in yuan of its kind granted to an Australian company-a landmark deal reflecting the depth of Fortescue’s long-standing relationship with China, according to the statement.

The funds will be used for general corporate purposes and to support Fortescue’s ambitious decarbonization program, including partnerships with Chinese suppliers and technology industry leaders.

“This is not just a financial transaction. It is a signal of what is possible when partners share the same ambitions. While the United States is pulling back from investing in what will become the world’s largest industry, China and Fortescue are developing the ‘green’ technologies needed to lead the global ‘green’ industrial revolution,” commented Fortescue Executive Chairman Andrew Forrest.

Fortescue also recalled that it is a major supplier of iron ore to China and receives revenue from iron ore sales in yuan.

As reported by GMK Center, Fortescue, the world’s fourth-largest iron ore supplier, and Baowu Resources-a subsidiary of the world’s largest steelmaker China Baowu Steel Group-signed a memorandum of cooperation in January this year to decarbonize the global steel industry. The partnership will help develop “green” technologies and supply chains for low-carbon steel products.