Fortescue has announced a groundbreaking partnership with Chinese heavy machinery manufacturer XCMG, valued at over US$400 million.
The deal will see Fortescue acquire more than 100 pieces of zero-emissions heavy mobile equipment for its Pilbara iron ore operations by 2030.
This landmark agreement, XCMG’s largest mining equipment contract outside China, includes the supply of battery-electric wheel loaders, wheel dozers, water carts, float prime movers, and graders.
The first units are expected to be deployed in 2026, marking a significant step in Fortescue’s ambitious decarbonisation strategy.
Fortescue Metals CEO Dino Otranto and XCMG Chairman Yang Dongsheng unveiled the partnership at Bauma China, emphasising its importance in Fortescue’s goal to eliminate Scope 1 and 2 terrestrial emissions by 2030.
Otranto stated: “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.”
The introduction of this zero-emissions fleet is projected to eliminate millions of litres of fossil fuels from Fortescue’s operations over the equipment’s lifecycle.
This move aligns with Fortescue’s commitment to leading innovation in green technology within the global mining industry.
Yang Dongsheng highlighted XCMG’s dedication to sustainable development and green technology, noting that new energy products now account for 18 per cent of the company’s revenue.
He emphasised the partnership’s potential to contribute significantly to global environmental protection and the development of a green, sustainable economy.
This collaboration between Fortescue and XCMG represents a major advancement in the mining industry’s efforts to reduce its environmental impact and transition towards more sustainable practices.