Australian mining giant Fortescue is committed to deepening ties with Chinese institutions, as it appreciates the industrial scale and innovation of the world's second largest economy and its burgeoning green economy, said a senior company executive.

"While iron ore remains central, opportunities are expanding collaboration across the value chain, including decarbonization technologies and the development of green iron," said Apple Paget, Fortescue Group chief financial officer, during an exclusive interview with China Daily.

"We're actively exploring partnerships in supply chain decarbonization and green iron production. China's capabilities in technology, engineering and clean energy deployment are world-leading, and we're eager to build on those strengths. China leads the world in industrial scale and manufacturing innovation. Fortescue is tapping into that expertise and scale to bring forward the solutions we need to decarbonize heavy industry," Paget said.

Her comments come on the heels of Fortescue securing a yuan-denominated loan worth 14.2 billion yuan ($1.98 billion), a move that further solidifies the company's relationship with Chinese financial institutions and provides crucial funding for its decarbonization plans.

This marks a significant breakthrough as it's the first time an Australian company has received a renminbi syndicated loan.

The five-year syndicated termloan facility — with a 3.8 percent per annum fixed interest rate — is backed by leading Chinese, Australian and international lenders, including Bank of China and ICBC.

"As the first syndicated RMB loan of this kind and scale secured by an Australian corporation, this transaction demonstrates how commercial relationships can thrive through shared ambition and mutual benefit. It also affirms the growing role of the renminbi in cross-border capital markets, particularly in sectors like commodities, where trade flows and investment strategies are becoming more diversified," she added.

This not only deepens the partnerships with key Chinese financial institutions, but also expands the company's syndicated network to include high-quality RMB financing institutions, Paget said.

"China and Fortescue are advancing the green technology needed to lead the global green industrial revolution," founder and executive chairman of the company, Andrew Forrest, said in a statement.

Fortescue is already working with Chinese institutions to deploy decarbonization technologies across its operations, from zero-emissions vehicles to green iron production.

Analysts see the deal as a significant vote of confidence in China's financial system and its commitment to green technology.

"China's vast market continues to be a key destination for iron ore from major mining companies, who are now prioritizing environmentally conscious partnerships," said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

China's significant iron ore consumption makes it an irresistible market for global mining powerhouses, leading them to prioritize the development of environmentally sound partnerships in the region, Zhao said.

While iron ore remains central to the relationship, Paget indicated that Fortescue is actively exploring partnerships in supply chain decarbonization and green iron production.

zhengxin@chinadaily.com.cn