Fortescue says it intends to purchase over 100 pieces of zero emissions Heavy Mobile Equipment under a deal with Chinese heavy machinery manufacturer, XCMG.
The contract, with a potential value of more than US$400 million, marks XCMG’s largest contract outside of China for mining equipment and will see battery electric wheel loaders, wheel dozers, water carts, float prime movers and graders delivered to Fortescue’s Pilbara mining operations by 2030.
The use of this equipment will eliminate millions of litres of fossil fuels from Fortescue’s iron ore operations over the life cycle of the assets, with the first pieces of equipment expected to be deployed from 2026.
Fortescue Metals Chief Executive Officer, Dino Otranto, joined XCMG Chairman, Yang Dongsheng, at Bauma China to announce the partnership and recognise the contract award.
“We’re moving rapidly to decarbonise our Pilbara iron ore operations and eliminate our 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.”
Yang Dongsheng said: “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% of revenue, leading the industry’s green and low-carbon transformation.”
He added: “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.”
He concluded: “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.”
The statement clarifies zero emission when used in relation to vehicles or power systems as meaning either a vehicle’s exhaust, or the power system, only emitting water vapour when in operation; or if the vehicle or power system is 100% battery powered then the vehicle, or power system, does not emit any exhaust emissions.
