Shares in Fortescue Metals Group Limited (ASX: FMG) are rising today, following the company’s confirmation of reports it’s in productive talks with the Democratic Republic of Congo. The Fortescue share price is currently $23.47 – 1.08% higher than its previous close.
This morning, Fortescue responded to reporting by the Australian Financial Review (AFR), stating it’s in talks to develop the $103.8 billion suite of Grand Inga Dam hydroelectric projects.
Let’s take a closer look at the news on the S&P/ASX 200 Index (ASX: XJO) iron ore giant today.
Fortescue’s African green energy focus
On Sunday 13 June, the AFR reported the iron ore miner is taking the first steps in its diversification strategy, looking to invest $100 billion in hydro energy.
The AFR reported Fortescue is expected to invest in and hold a majority stake in the Grand Inga Dam projects.
The Grand Inga Dam is the world’s largest proposed hydro energy project. It could produce up to 42,000 megawatts of electricity.
Fortescue confirmed the news to the ASX this morning.
The company stated it hasn’t made a formal agreement with the central African nation. However, the Democratic Republic of Congo government has directed bodies interested in the projects to Fortescue Future Industries.
The AFR quoted Fortescue chair Andrew Forrest as saying:
We have a number of parties highly interested in supporting our projects and Fortescue will invest on behalf of itself and its supporters over $US100 billion developing the top hydro, solar and geothermal sites in Africa.
Fortescue will take each project through to bankable feasibility approval where there are an array of international investors and lenders willing to participate in the green energy revolution.
As reported by the AFR, Forrest said Fortescue has “firm interest… in Europe” for 100 gigawatts of renewable energy the company could generate through the hydro energy projects.
Fortescue share price snapshot
The Fortescue share price has failed to ignite on the ASX so far in 2021.
Currently, the Fortescue share price is up by a modest 0.17% from the start of this year. However, it has gained around 64% since this time last year.
The iron ore giant has a market capitalisation of around $73 billion, with approximately 3 billion shares outstanding.