Fortescue Partners with XCMG for $400M Zero-Emission Mining Equipment Deal
Australian iron ore giant Fortescue has signed a contract with Chinese heavy machinery manufacturer XCMG to acquire over 100 zero-emission heavy mobile mining equipment units.
The deal, valued at more than $400 million, is XCMG’s largest mining equipment contract outside China. It includes battery-electric wheel loaders, wheel dozers, water carts, float prime movers, and graders for Fortescue’s Pilbara mining operations.
The adoption of these zero-emission machines is expected to eliminate millions of liters of fossil fuel consumption over the lifespan of the equipment. Initial deployments are scheduled for 2026, with full implementation by 2030.
Fortescue Metals CEO Dino Otranto announced the partnership alongside XCMG Chairperson Yang Dongsheng at the Bauma China event.
“We are rapidly advancing our efforts to decarbonize Pilbara iron ore operations and achieve net-zero Scope 1 and 2 terrestrial emissions by 2030. Replacing hundreds of diesel-powered mining vehicles with zero-emission alternatives is critical to this goal,” Otranto stated.
Otranto emphasized the significance of the collaboration, calling it a pivotal step in Fortescue’s decarbonization journey. “This partnership with XCMG showcases our commitment to green technology innovation and demonstrates that the global mining industry can lead the way in achieving decarbonization,” he added.
