Fortescue Metals Group has signed a landmark contract with machinery manufacturer giant XCMG to supply over 100 pieces of zero-emissions heavy mobile equipment for its Pilbara iron ore operations.
The contract, valued at more than US$400 million, represents XCMG’s largest mining equipment deal outside of China.
The equipment, including battery electric wheel loaders, wheel dozers, water carts, float prime movers, and graders, is set to be delivered by 2030, with the first pieces expected to be deployed from 2026.
Fortescue CEO Dino Otranto highlighted the importance of the partnership, stating that the company aims to eliminate its Scope 1 and 2 terrestrial emissions by 2030.
“To achieve this target, we will need to swap out hundreds of pieces of diesel mining equipment at the end of their life with zero emissions alternatives,” Otranto said.
“We’re thrilled to partner with XCMG to supply and support cutting-edge battery electric mining equipment, marking another significant step forward in our decarbonisation journey.
“As the global mining industry continues to evolve, we’re proud to be at the forefront of driving innovation in value adding green technology and showing the world that industry can decarbonise.”
The equipment is expected to eliminate millions of litres of fossil fuels from Fortescue’s iron ore operations over the lifecycle of the assets.
XCMG Chairman Yang Dongsheng emphasised the company’s commitment to sustainable development.
“XCMG is dedicated to long-termism and sustainable development, offering high-end, intelligent and green ‘product + scenario’ full life cycle solutions to global customers. The company has achieved green electrification across its entire product range, with new energy products accounting for 18 per cent of revenue, leading the industry’s green and low-carbon transformation,” Yang said.
“Since last year, XCMG has fully launched its “No. 1 Project” for intelligent transformation, digital transformation and networking. This initiative promotes a shift from traditional, single-point and local informatisation to a global, full value chain and comprehensive business domain digital transformation. XCMG is committed to building a smart, green, and world-class company.
“XCMG and Fortescue have formed a long-term partnership based on ‘value resonance, cultural resonance and win-win cooperation’. This collaboration will significantly contribute to global environmental protection and the development of a green, sustainable economy.”
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