Fortescue signs $600m deal for battery electric mining equipment in pursuit of real zero

Australian mining giant Fortescue announced on Wednesday that it will pony up over $A600 million for zero emissions mining equipment from Chinese heavy machinery manufacturer XCMG, just weeks after a multi-billion dollar deal for electric trucks and bulldozers.

The latest agreement will see Fortescue purchase over 100 pieces of zero emissions heavy mobile equipment worth more than $US400 million, or around $A600 million, including battery electric wheel loaders, wheel dozers, water carts, float prime movers, and graders.

It will be XCMG’s largest contract outside of China for mining equipment, and will see all pieces of equipment delivered to Fortescue’s Pilbara mining operations from 2026 and by the end of this decade to help the Australian company meet its ambitious goal of real zero emissions by 2030.

Fortescue says the equipment will help to eliminate millions of litres of fossil fuels from its iron ore operations over the lifecycle of the assets.

“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,” said Dino Otranto, CEO of Fortescue Metals.

“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.”