The Fortescue (ASX:FMG) share price is gaining today

Fortescue has confirmed reports on its monumental investment in green energy in Africa.

| More on:
Female power plant worker looks at switchboard

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »