Glossary
A
AI
Artificial Intelligence
ASX
Australian Securities Exchange.
Australian Accounting Standards
Australian Accounting Standards are developed, issued and maintained by the Australian Accounting Standards Board, an Australian Government agency under the Australian Securities and Investments Commission Act 2001.
B
Beneficiation
Beneficiation is a process whereby ore is pulverised into fine particles and the higher grade material is separated, often magnetically, from the gangue (waste).
bt
Billion tonnes.
C
C1 Costs
Operating costs of mining, processing, rail and port on a per tonne basis, including allocation of direct administration charges and production overheads.
CFR
A delivery term that indicates that the shipment price includes the cost of goods, freight costs and marine costs associated with a particular delivery.
CFO
Chief Financial Officer
Chichester Hub
Fortescue’s mining hub with two operating iron ore mines, Cloudbreak and Christmas Creek.
CID
Channel Iron Deposit.
CO2-e
When we refer to emissions, this includes all greenhouse gas emissions, reported in the unit of million tonnes of carbon dioxide equivalent (CO2-e). This is defined as the amount of CO2 that would cause the same temperature rise, over a given time period, as an emitted amount of greenhouse gas or mixture of greenhouse gases. CO2-e is the universal unit of measurement to indicate the aggregate carbon dioxide equivalent emissions of carbon dioxide (CO2), methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride.
Contractors
Non-Fortescue employees, working with the Company to support specific business activities.
Corporations Act
Corporations Act 2001 of the Commonwealth of Australia.
D
Direct Employees
Total number of employees including permanent, fixed term and part-time. Does not include contractors.
dmt
Dry metric tonne.
E
Emissions
When we refer to emissions, we refer to all greenhouse gas emissions, reported in the unit of million tonnes of carbon dioxide equivalent (mtCO2-e). This is defined as the amount of CO2 that would cause the same temperature rise, over a given time period, as an emitted amount of greenhouse gas or mixture of greenhouse gases.
Emissions intensity
Amount of greenhouse gases emitted per unit of output.
F
Fe
The chemical symbol for iron.
FID
Final Investment Decision, marks the transition from project development and feasibility studies to the actual implementation and construction phase.
FIFO
Fly-in fly-out is defined as circumstances of work where the place of work is sufficiently isolated from the worker’s place of residence to make daily commute impractical.
Fortescue
Fortescue Ltd (ACN 002 594 872) and its subsidiaries.
Fortescue blend
A blend of ore from Christmas Creek and Firetail mines, with an iron grade of 58.2% Fe.
Fortescue River Gas Pipeline
A 270 kilometre gas pipeline which delivers natural gas from the Dampier to Bunbury Pipeline to the main power station in the Solomon Hub.
FY
Refers to a financial year, end 30 June.
G
Gearing
Debt / (debt + equity).
Green ammonia
Green ammonia is ammonia produced using green hydrogen and nitrogen (extracted from the air), and the production process is powered by renewable energy.
Green hydrogen
Green hydrogen is hydrogen produced by the electrolysis of water, using renewable energy.
Green Metal
Green Metal is defined as iron made using processes and technologies that generate lower emissions than conventional methods. It encompasses a wide range of iron-containing products made from the reduction of iron ore, including sponge iron, pig iron, and direct reduced iron. This is a different product to green steel, a subsequent product made by alloying iron.
Green steel
Steel made using Green Metal, powered by 100 per cent renewable energy.
GJ
Gigajoules, or 1,000,000,000 joules.
GW
Giga watt, or 1,000,000,000 watts.
GWh
Giga watt hours
H
Ha
Hectares.
HME
Heavy Mining Equipment, includes large machinery used for the extraction, transportation, and processing of iron ore, such as
diggers, excavators, haul trucks and drilling units.
Hematite
An iron ore compound with an average iron content of between 57 per cent and 63 per cent Fe. Hematite deposits are typically large, close to the surface and mined via open pits.
I
Indicated Mineral Resource
An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to assume geological and grade (or quality) continuity between points of observation where data and samples are gathered. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Ore Reserve.
Inferred Mineral Resource
An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to an Ore Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
International Financial Reporting Standards
International Financial Reporting Standards (IFRS) is a single set of accounting standards, developed and maintained by the International Accounting Standards Board with the intention of those standards being capable of being applied on a globally
consistent basis.
IPCC
Intergovernmental Panel on Climate Change, a United Nations body that assesses the science related to climate change, providing policymakers with regular scientific assessments and guidance on climate-related issues.
J
JORC
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 Edition, each prepared by the Joint Ore Reserves Committee of the Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia, as amended or supplemented from time to time.
K
Kings CID Fines
Fortescue’s standalone product produced from Channel Iron Deposit Ore from its Kings Valley mine in the Solomon Hub, with an iron content of 57.3% Fe.
KMP
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
M
Magnetite
An iron ore compound that is typically a lower grade ore than hematite iron ore because of a lower iron content. Magnetite ore requires significant beneficiation to form a saleable concentrate. After beneficiation, Magnetite ore can be pelletised for direct use as a high-grade raw material for steel production.
Measured Mineral Resource
A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade (or quality) densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to confirm geological and grade (or quality) continuity between points of observation where data and samples are gathered. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proved Reserve or under certain circumstances to a Probable Ore Reserve.
Mt
Million tonnes.
mtpa
Million tonnes per annum.
MW
Mega watt, or 1,000,000 watts.
MWh
Mega watt hours
N
Net gearing
(Debt - cash) / (debt - cash + equity).
NPAT
Net profit after tax.
O
OEM
Original Equipment Manufacturers.
OPF
Ore Processing Facility.
P
Pilbara
The Pilbara region in the north-west of Western Australia.
Pilbara Energy Connect (PEC)
Fortescue's energy generation and transmission program of works.
Probable Ore Reserve
As defined in the JORC Code, the economically mineable part of an Indicated Resource, and in some circumstances, a Measured Resource. It includes diluting materials and allowances for losses which may occur when the material is mined.
Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.
Proved Ore Reserve
As defined in the JORC Code, the economically mineable part of a Measured Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could
reasonably be justified.
R
Reserves or Ore Reserves
As defined in the JORC Code, the economically mineable part of a Measured Resource and/or an Indicated Mineral Resource.
It includes diluting materials and allowances for losses, which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore reserves are subdivided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves. Where capitalised, this term refers to Fortescue’s estimated reserves.
Resources or Mineral Resources
As defined in the JORC Code, a concentration or occurrence of material of intrinsic economic interest in or on the Earth’s crust in such form, quantity and quality that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are subdivided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. Where capitalised, this term refers to Fortescue’s estimated Mineral Resources.
S
Scope 1 emissions
Scope 1 emissions are direct emissions that are from sources owned or controlled by an entity.
Scope 2 emissions
Scope 2 refers to emissions associated with the production of electricity, heat, or steam purchased by an entity.
Scope 3 emissions
Scope 3 refers to all other indirect emissions associated with activities or facilities not owned or controlled by the entity, including both upstream and downstream emissions.
Senior executive
Leadership position title of Director or Group Manager.
Solomon Hub
A mining hub with Firetail, Kings Valley and Queens Valley mines.
Super Special Fines
Fortescue’s iron ore product from the Chichester Hub, with an iron content of 56.4% Fe.
T
TCFD
The Taskforce on Climate-related Financial Disclosures, established to develop recommendations for more effective climate-related disclosures that enable a better understanding of carbon related assets and exposures to climate-related risks.
TRIFR
Total recordable injury frequency rate per million hours worked, comprising lost time injuries, restricted work and medical treatments.
Total global economic contribution
Payments that contribute to the global economy including payments to suppliers, employees (salaries and wages), governments (taxes and royalties), shareholders and investors (dividends and debt repayments).
TTC
Tax Transparency Code
U
Underlying EBITDA
Underlying EBITDA is defined as earnings before interest, tax, depreciation and amortisation, exploration, development and other expenses.
Underlying EBITDA margin
Underlying EBITDA / operating sales revenue.
Underlying net profit after tax
Net profit after tax (NPAT) adjusted for results adjusted for the removal of significant non-cash and non-recurring items.
V
VLOCs
Very Large Ore Carriers
W
Western Hub
The Western Hub includes the Firetail, Kings and Queens, Eliwana and Flying Fish deposits.
wmat
Wet metric tonne.
Z
Zero emissions
When used in relation to vehicles, mining equipment or power systems means that: (a) a vehicle’s exhaust, or mining equipment or power system, only emits water vapour when in operation; or (b) if the vehicle, mining equipment or power system is 100%
battery powered then it does not emit any exhaust emissions.