Fortescue has awarded a contract worth more than $400m (2.9bn yuan) to Chinese heavy machinery manufacturer XCMG to supply more than 100 pieces of zero-emissions heavy mobile equipment.
The contract, XCMG’s largest outside China for mining equipment, will include the delivery of battery-electric wheel loaders, wheel dozers, water carts, float prime movers and graders to Fortescue’s Pilbara operations by 2030.
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By GlobalDataThe deployment of this zero-emissions equipment is expected to eliminate millions of litres of fossil fuels from Fortescue’s iron ore operations over the assets’ life cycle.
Fortescue Metals CEO Dino Otranto, alongside XCMG Chairman Yang Dongsheng, announced the partnership at Bauma China.
Otranto said: “We are 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.
“We are thrilled to partner with XCMG to supply and support cutting-edge battery electric mining equipment, marking another significant step forward in our decarbonisation journey.”
The first pieces of equipment are due to be operational by 2026, marking a significant step in Fortescue’s decarbonisation efforts.
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.”
“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.”
Fortescue has also recently expanded its partnership with equipment-maker Liebherr via a $2.8bn (A$4.07bn) deal to co-develop and validate a zero-emission mining fleet.
The company plans to purchase around 360 autonomous battery-electric trucks, 55 electric excavators and 60 battery-powered dozers, replacing approximately two-thirds of its existing fleet to be deployed at Fortescue’s operations in Western Australia.
