China's economic development has made it a key player in the global economy, which will continue to shape global economic growth and technological innovation, including the development of green iron for green transition, in the years to come, said a top executive of Fortescue, a West Australian company specializing in iron ore.

The prospects for China's continued growth remain bright, driven by domestic consumption, technological innovation and participation in global initiatives such as the green energy transition, said Dino Otranto, Fortescue Metals CEO.

"Fortescue has been investing heavily in technology and building genuine and trusting friendships with our Chinese partners, underpinning the success and longevity of what has been a mutually beneficial partnership," he said.

"Working with China will help give Fortescue a competitive advantage to achieve our decarbonization targets and has the potential to deliver massive economic opportunities in both countries."

The strength of the bilateral relationship, built through its traditional iron ore business over the past two decades, will provide the critical foundations for the next chapter focused on both countries' green transformation, he said.

According to Otranto, Fortescue is committed to working with its Chinese partners to build a supply chain aimed at providing green iron metal to China by capitalizing on the abundance of solar and wind energies in Australia, the existing financial and technical capabilities of China's manufacturers of innovative green equipment, and Fortescue's green tech and iron ore supply.

The company is committed to providing 100 million metric tons of green iron metal to China each year, eliminating more than 200 million tons of carbon dioxide emissions. The equipment and technology will be sourced from China and Australia, he said.

"From next year, we aim to produce green iron from our Green Iron Metal Commercial Plant whose construction will start within the next few months. This will be able to produce more than 1,500 tons of green iron every year using green hydrogen produced at Christmas Creek (in the Pilbara region of western Australia) and will be suitable for use in almost any steel plant globally."

Fortescue will be supplying 2,000 tons of green iron metal to China within 12 months, he said.

An analyst said green iron metal supply chain between Australia and China will create great opportunities for the green industry in both countries.

"With the support of the Chinese government and the innovation and cooperation of both countries' industrial and technology sectors, the green iron metal supply chain will develop the potential to bring massive economic and environmental value to both countries," said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

"China remains a market for many global mining giants' iron ore business due to its massive market, with many mining behemoths, including Rio Tinto and Vale, now looking forward to building new relationships in a green-focused world."

According to Otranto, partnering with China to help make its steel industry green will be a major benefit to both economies and to bilateral relations, shoring up Australia as China's reliable and preferred commodity supplier.

"China's just-concluded third plenary session of the 20th Central Committee of the Communist Party of China has emphasized the importance of energy transition, which we believe will be providing massive opportunities for global mining companies like Fortescue amid the improved business environment in the country in recent years," Otranto said.