Sydney, Jan 18, 2026, 17:09 AEDT — The market has closed.
- Fortescue shares edged up in the final ASX session and kick off the week buoyed by new project updates.
- Investors are grappling with the impact of the renewables build-out on costs and spending at the Pilbara mines.
- Iron ore is still the key swing factor, with traders watching China’s demand and port stockpiles closely.
Fortescue Ltd shares closed Friday 0.3% higher at A$22.82, following an update on renewable energy initiatives aimed at reducing diesel and gas consumption at its Pilbara iron ore sites. 1
Timing is crucial. Fortescue faces a pivotal week as it prepares to release its December-quarter production report—a snapshot of shipments and costs that often shapes sentiment for iron ore stocks once markets resume.
It highlights just how heavily Fortescue is committing to its “real zero” plan this year—and what that commitment is costing—at a time when iron ore prices are volatile and steel margins in China remain squeezed.
Fortescue has kicked off construction on its 133-megawatt Nullagine wind farm in the Pilbara, marking its first operational wind project. The site will feature 17 turbines tailored for low-wind zones and built to withstand extreme weather like cyclones. Dino Otranto, Metals and Operations CEO, emphasized that “delivering Real Zero requires replacing diesel and gas” with renewables. He added that wind power will work “alongside solar and batteries” to electrify both equipment and rail. 2
Fortescue cleared a key regulatory hurdle on Friday, securing federal environmental approval for its 644-MW Turner River solar farm in Western Australia’s Pilbara. The project comes with conditions, including restrictions on land clearing and a minimum A$3.39 million payment to address habitat impacts. Turner River is planned to tie into Fortescue’s Pilbara Energy Connect network. According to pv magazine, Fortescue’s “real zero” goal for its iron ore operations means eliminating gas or diesel use for power and mobile equipment. 3
The broader market wrapped up last week with a risk-on tilt. Australia’s ASX 200 finished Friday 0.5% higher at 8,903 points, despite the materials sector slipping 0.4%. Spot iron ore dipped 0.2% to $107.15 a tonne near the close. 4
Offshore iron ore markets lost ground as well. The most-active May contract on China’s Dalian Commodity Exchange closed Friday down 0.49% at 812 yuan per tonne. Meanwhile, the benchmark February contract in Singapore dipped 0.57% to $106.3 a tonne. Mysteel data revealed that imported ore stockpiles at major Chinese ports climbed for an eighth straight week, hitting a record 165.6 million tonnes. 5
Fortescue still faces risks this week. A steeper drop in iron ore prices, a sharper decline in Chinese demand, or setbacks and added expenses from approvals and offset rules could all challenge the argument that investing in renewables will cut operating costs without hurting cash returns.
Investors will be watching closely on Thursday, when Fortescue plans to release its December 2025 quarterly production figures. The company’s half-year results will follow on Feb. 25. 6
