Fortescue Future Industries Pty Ltd, a wholly-owned subsidiary of Fortescue Metals Group Ltd (Fortescue) has entered into a Deed of Agreement with Indonesia.
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. Subject to the completion of feasibility studies and approvals, individual projects will be developed by Fortescue Future Industriese.
The Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia, Luhut Binsar Pandjaitan and Fortescue’s Chairman Dr Andrew Forrest AO said in a joint statement that 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 noted that 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,” he said.
The Government of the Republic of Indonesia and the Minderoo Foundation (a philanthropic organisation established by Andrew Forrest and Nicola Forrest in 2001) have also signed a Letter of Intent to dramatically reduce plastic pollution in Indonesia’s coastal waters by 2025. The 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,” he concluded.