Fortescue share price leaps 4% as Twiggy's US push rolls on

ASX mining shares are up on Tuesday after China hinted its intention to raise domestic demand.

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Key points

  • The Fortescue share price rose to an intraday high of $23.13 in early trading on Tuesday, up 4.25%
  • Other ASX mining shares are following suit after China hinted its intention to raise domestic demand 
  • Meantime, Fortescue founder and executive chairman Andrew "Twiggy" Forrest remains in the United States on an international tour

The Fortescue Metals Group Ltd (ASX: FMG) share price rose to an intraday high of $23.13 in early trading on Tuesday, up 4.25%.

The iron ore giant is retracing toward its 52-week high of $23.325 achieved in February.

Meantime, Fortescue founder and executive chairman Dr Andrew "Twiggy" Forrest remains in the United States on an international tour.

Fortescue share price lifts on China demand hint

Fortescue is not the only ASX mining share gaining in early morning trading on Tuesday.

The Australian reports that "a somewhat vague commitment by China's politburo to increase domestic demand" has led to a boost for the ASX resources sector today.

Meantime in the US, Dr Forrest has reportedly visited the Alabama shipyards of Australian defence shipbuilder Austal Ltd (ASX: ASB).

Andrew and Nicola Forrest's private investment company Tattarang is Austal's biggest shareholder.

Forrest and Austal CEO John Hartman also attended meetings at the White House.

As we reported last week, Fortescue has announced the first major move in the US for its green energy division, Fortescue Future Industries (FFI).

According to the statement, FFI is investing US$24 million to acquire a 100% interest in Phoenix Hydrogen Hub (PHH).

PHH is developing a proposed green hydrogen project near Phoenix, Arizona.

Phase One of PHH will be an 80MW electrolyser and liquefaction facility.

It will be capable of producing up to 12,000 tonnes of liquified green hydrogen annually.

This has the potential to displace the equivalent of 10 million gallons of diesel consumption per year.

10th senior executive departure in 2 years

In other news around Fortescue today, the Australian Financial Review (AFR) reports the tenth departure of a senior Fortescue executive in two years.

Fortescue Future Industries acting chief financial officer Felicity Gooding has quit after almost a decade working with Forrest.

The AFR quotes Gooding as saying:

It was an extremely difficult decision to leave a business that I firmly believe is on track to become a global green energy powerhouse.

I am looking forward to seeing FFI thrive while pursuing other opportunities in the clean energy transition.

Fortescue will release its Q4 FY23 results on Thursday.

Motley Fool contributor Bronwyn Allen has positions in Fortescue Metals Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Austal. 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 Scott Phillips.

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