FMG - Fortescue Ltd

[Value Collector]

You only have to go as far as to look at FMG's shrinking revenue and profits, and if they keep on going down the same path, they're going to be in trouble before long. I can't legally disclose the mine due to a NDA, but a major mine tried to go electric, and they had to go back to diesel because electric was unreliable due to all the vibration on a mine site.

A lot of mine site electrical generation these days is a mixture of diesel and natural gas run generation by the way, and they hedge against diesel prices with contracts.

“Shrinking revenue and profits”??? Are you sure you aren’t just talking about movements in the Iron Ore price?

FMG’s profits will follow the Iron Ore price just like any other miner.

If a carbon tax was implemented, how would that affect a miners cost of their electricity if they are burning diesel and gas? How would it affect a miners cost that’s using renewables for a high percentage of their electricity?

I am not sure what you are talking about with FMG not being able to go electric, they are already consuming large volumes of electricity to run their sites, this is being supplied by gas fired and diesel powered generators linked to a grid, there is nothing crazy about hooking up some solar and wind to that grid so that you don’t need to burn as much gas.

 

[Value Collector]

VC probably has more of an understanding and be able to better explain it.
I would have a go, but I don't use AI, so I wouldn't want to be drawn into a debate.

well, I am no expert on it either, but Tesla Mega pack batteries talk about having cooling system inbuilt in them.


Tesla mega pack