Fortescue is sticking to its green energy aspirations by inking a partnership with Chinese heavy machinery manufacturer, XCMG. Under a whopping deal valued at over US$400M, Fortescue will become the proud owner of more than 100 pieces of zero-emissions Heavy Mobile Equipment. This contract is not only XCMG’s largest outside of China for mining equipment but also a pivotal move in Fortescue’s ambitious decarbonization strategy.
The equipment, which includes battery electric wheel loaders, wheel dozers, water carts, and all sorts of other mining goods, will be delivered to Fortescue’s Pilbara mining operations by 2030. The introduction of these machines is expected to eliminate millions of litres of fossil fuels from Fortescue’s iron ore operations over their lifecycle, with the first units set to be deployed by 2026.
Fortescue Metals CEO, Dino Otranto, and XCMG Chairman, Yang Dongsheng, announced the partnership at Bauma China, highlighting the significance of this collaboration. Otranto emphasized the urgency of decarbonising Fortescue’s Pilbara operations to meet their goal of eliminating Scope 1 and 2 terrestrial emissions by 2030. He noted that replacing hundreds of diesel-powered machines with zero-emissions alternatives is crucial to achieving this target.
“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, 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 was also thrilled with the partnership, highlighting XCMG’s commitment to sustainable development and green technology. He emphasized the company’s achievements in green electrification, with new energy products now accounting for 18% of their revenue. Yang also detailed XCMG’s “No. 1 Project,” aimed at transforming the company through intelligent and digital advancements.
“XCMG and Fortescue have formed a long-term partnership based on ‘value resonance, cultural resonance, and win-win cooperation’,” Yang said. “This collaboration will significantly contribute to global environmental protection and the development of a green, sustainable economy.”
