Fortescue awards $400m contract to XCMG to supply zero emissions mining equipment
Australian iron-ore major Fortescue will buy more than 100 zero-emission heavy mobile mining equipment items under a deal with Chinese heavy machinery manufacturer, XCMG.
The contract, with a potential value of more than $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 CEO Dino Otranto joined XCMG chairperson 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,” said Otranto.
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