Australia's PLS signs 20-year power pact with Fortescue unit for Pilgangoora mine (updated)

Fortescue

28/10/2026 24:37

Updates with shares and details
Oct 28 (Reuters) - Australia's PLS Group PLS.AX said on Wednesday it had signed a 20-year power purchase agreement with FMG Clean Energy, owned by iron ore miner Fortescue FMG.AX, to meet rising power demand at its Pilgangoora operation under the P2000 expansion plan.
PLS, the country's largest independent lithium producer, plans to invest about A$150 million ($105.42 million) between 2027 and 2029 in transmission connection and power infrastructure upgrades.
FMG will supply at least 325 gigawatt-hours of electricity annually to the Pilgangoora Operation from 2029, subject to regulatory approvals and construction of the required infrastructure
PLS expects the agreement to lower unit operating costs at Pilgangoora by about A$15 to A$20 per tonne under its P2000 expansion plan
"PLS is our first customer, with a strong pipeline of others across the Pilbara looking to our Green Grid for 
greater choice and flexibility in how they source their power," said Fortescue CEO, Dino Otranto
The agreement is expected to reduce Pilgangoora's power-related emissions intensity by up to 80% from 2023 levels by 2030 
Separately, PLS revised its full-year capital expenditure forecast for 2027 to A$1.13 billion-A$1.20 billion, up from its previous outlook of A$1.11 billion to A$1.18 billion 
Earlier this month, PLS had approved a A$1.9 billion expansion of Pilgangoora lithium mine, betting that growing electric-vehicle adoption would support long-term lithium demand despite recent price volatility
Shares of PLS rose as much as 8.3% to A$3.12, their highest level since October 16

   ($1 = 1.4229 Australian dollars)

 (Reporting by Paridhi Minda; Editing by Perla Velasco and Sherry Jacob-Phillips)
 ((Paridhi.Minda@thomsonreuters.com))