Fortescue has inked a deal with Chinese heavy machinery manufacturer XCMG to acquire more than 100 pieces of zero-emissions heavy mobile equipment for its Pilbara iron ore operations.
The contract, valued at over $US400 million ($615 million), is XCMG’s largest mining equipment deal outside China and will see the delivery of battery electric wheel loaders, wheel dozers, water carts, float prime movers, and graders by 2030.
The initiative is set to eliminate millions of litres of fossil fuels from Fortescue’s Western Australian operations, with the first equipment expected by 2026.
Fortescue chief executive officer Dino Otranto and XCMG chair Yang Dongsheng announced the partnership during Bauma China, an international trade show for heavy machinery.
“We’re moving rapidly to decarbonise our Pilbara iron ore operations and eliminate our Scope 1 and 2 terrestrial emissions by 2030,” Otranto said.
“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.
“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.”
Otranto said as the global mining industry continues to evolve, Fortescue is proud to be at the forefront of driving innovation in value-adding green technology and showing the world that industry can decarbonise.
Dongsheng spoke about the company’s commitment to sustainable innovation and its vision for a greener future.
“XCMG is dedicated to long-termism and sustainable development, offering high-end, intelligent, and green ‘product and scenario’ full lifecycle solutions to global customers,” Dongsheng said.
“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 partnership represents an important step in Fortescue’s aims to eliminate terrestrial emissions by 2030 while reinforcing XCMG’s position as a leader in green mining equipment.