Fortescue Future Industries Pty Ltd, a wholly owned subsidiary of Fortescue Metals Group Ltd (Fortescue) has entered into a Deed of Agreement with the Government of the Republic of Indonesia (represented by the Coordinating Minister for Maritime Affairs and Investment).
In an important development, the Government of the Republic of Indonesia and Minderoo Foundation have also signed a Letter of Intent to dramatically reduce plastic pollution in Indonesia’s coastal waters by 2025.
The Deed of Agreement provides first priority to Fortescue Future Industries to conduct development studies into the feasibility of projects utilising Indonesia’s hydropower and geothermal resources to support green industrial operations, principally for export to global markets.
Fortescue Future Industries is underpinned by Fortescue’s world class expertise, operational excellence and proven capability to drive future growth. Fortescue is a values-based business, committed to investing in the long term sustainability of its core business while pursuing growth and development and delivering returns to shareholders.
Subject to the completion of feasibility studies and approvals, individual projects will be developed by Fortescue Future Industries with ownership and project finance sources to be separately secured without recourse to Fortescue.
The Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia, Luhut Binsar Pandjaitan said, “Indonesia and Fortescue Future Industries have entered into a preliminary binding agreement to assess the development of Indonesia’s substantial renewable power to drive green industries.”
Minister Luhut and Fortescue’s Chairman Dr. Andrew Forrest AO said in a joint statement, “The establishment of totally new and future large scale industries will drive growth in Indonesia’s economy.”
Dr. Forrest added, “We have historically always enriched our organisation by providing training for guaranteed employment to local communities who have then strongly supported the projects we have developed together. We expect the new green industries in Indonesia to substantially diversify, broaden and deepen Indonesia’s already skilled workforce.”
Minister Luhut commented, “For too many decades, proposals have been thrust upon Indonesia that rely on the Indonesian people assuming the full financial risk through the purchase of electricity at prices that underwrote these developments. This agreement allows Fortescue Future Industries to access all the major hydropower and geothermal opportunities in Indonesia and establish downstream value adding industry to fully utilise the power created from sustainable energy sites.”
Through a joint partnership with the Government of the Republic of Indonesia, Minderoo Foundation will pilot its ‘Sea The Future’ initiative in Indonesia to scale up recycling and waste collection infrastructure and operations. Sea The Future is a coalition of leading companies in the plastics industry committed to ending plastic leakage to nature and accelerating the transition to a circular plastics economy.
“I am proud to announce this partnership with the Government of Indonesia to establish Sea The Future Indonesia,” said Dr. Forrest. “We know that the harm caused by plastic pollution entering the environment impacts us all, but it disproportionately impacts the most vulnerable in our societies.”
“The coronavirus crisis has made already intolerable conditions worse – low oil prices are forcing recyclers of plastic out of business, and waste collectors are unable to work for fear of contagion. Through Sea The Future Indonesia, Minderoo Foundation will work with the Government of Indonesia to build a circular plastic economy that provides job security for tens of thousands of people and environmental security for all.”
Background on Minderoo Foundation
Minderoo Foundation is a modern philanthropic organisation.
Minderoo Foundation is independent, forward thinking and seeks effective, scalable solutions. We are proudly Australian, and one of Asia’s largest philanthropies, with AUD $2 billion committed to a range of global initiatives. Our team comprises over 75 employees across seven locations.
Our philanthropy is supported by Tattarang and its portfolio of businesses and dividends from our investment in Fortescue Metals Group. This integrated model ensures a level of unparalleled sustainability for our philanthropic activities.