‘So massive’: Forrest says he had to step in for big challenges ahead

Billionaire Andrew Forrest says he had to step in to help his mining group Fortescue Metals deal with its most challenging time since its inception.

Forrest will once again don the high-vis vest and run Fortescue’s iron ore operations as part of a restructure that will see its nascent green energy business, Fortescue Futures Industry, gain equal ranking with its multibillion-dollar iron ore operation with direct representation at board level.

“It is now going through the most challenging opportunity since its first three years of the company starting, and that is the only reason I have stepped back into executive chair. It is because the roles and requirements of those two chief executives (iron ore and FFI) are simply so massive,” he told the Sydney Morning Herald and The Age.

Forrest will act as the interim boss of the iron ore business when Elizabeth Gaines steps down as Fortescue CEO in August. He says the company already has a shortlist of candidates to lead the operation permanently. “The shortlist is immensely talented people. Some are household names and others you have never heard of,” he said.

Fortescue Future Industry’s (FFI) executive team will also be bolstered with the appointment of the former head of GE Europe, Mark Hutchinson, to head FFI. Former AGL boss Andy Vesey will be appointed as FFI’s head of energy transition projects.

“Today is a further progression of Fortescue’s transition to a global, green renewable and resources company,” Forrest said in the release to the ASX.

“This growth and value to shareholders is already evident with our shareholder base doubling since FFI was launched, with our investors ranging from top tier institutional banks to grassroots investors, all wanting to be a part of this mission, as we continue to strongly outperform our peers in the iron ore sector,” he said.

Forrest returns to an executive role at Fortescue more than a decade after relinquishing the CEO role amid a Federal Court case where he and Fortescue were accused of misleading claims on deals with Chinese firms. He faced a ban from acting as a company director and heavy fines, but won on appeal.

Gaines, the current chief executive, will retain a board role and act as FFI’s ambassador.