Forrest, Stokes in truck deal battle

Tuesday, 14 February, 2023 - 17:19
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Fortescue choosing German giant Liebherr rather than WesTrac for a contract has caused a rift with billionaire Kerry Stokes' empire, FMG chair Andrew Forrest has claimed to staff.

Mr Forrest, a mining billionaire, has been on an ambitious drive to slash emissions in the resources industry, including through development of green hydrogen.

That led Fortescue to pick Liebherr in June to supply 120 new haul trucks, which would amount to about 45 per cent of the miner’s fleet.

Trucks account for more than a quarter of the iron ore giant's Scope 1 emissions.

Liebherr was to work with Williams Advanced Engineering, a Fortescue Future Industries business, to transition the fleet away from diesel to green power by 2030.

But in what was believed to be a company briefing on Tuesday, Mr Forrest is understood to have told staff the contract decision had led to negative coverage in media, highlighting The West Australian.

Mr Forrest said clean energy disruption was widely supported, but that was not the case in businesses which are impacted- referring to Seven Group's resources interests.

The West Australian is a part of Seven West Media, which is 39 per cent owned by Seven Group Holdings, a business which also controls mining equipment company WesTrac.

Mr Forrest said The West’s commentary on many matters had been biased, inflammatory and inaccurate, and he claimed it may have been driven by commercial interests.

“I tell it like I see it,” Mr Forrest said.

The West’s commentary on this, and many other matters, has been biased, inflammatory and above all inaccurate.

“This could well be driven by narrow self-seeking commercial interest which does not support the steps we have all taken to make polluting mobile equipment history.

“Everyone loves positive disruption… except perhaps when it happens to them.”

Fortescue has been under pressure in recent weeks over provision of harassment documents to WorkSafe, reported job losses, and challenges for the green hydrogen business.

Fortescue Metals Group and Seven West have not responded to requests for comment.

Nor has Australian Capital Equity, the top company in Kerry Stokes' business empire which includes Seven West and Seven Group.