Fortescue Metals Group has signed a landmark agreement with Chinese heavy machinery manufacturer XCMG to procure over 100 pieces of zero-emissions heavy mobile equipment, advancing its decarbonisation efforts. The deal, valued at over $400 million, represents XCMG’s largest mining equipment contract outside China and will supply battery-electric machinery to Fortescue’s Pilbara mining operations by 2030.
The fleet will include electric wheel loaders, dozers, water carts, float prime movers, and graders. The initiative is expected to eliminate millions of liters of fossil fuel use in Fortescue’s iron ore operations over the lifespan of the equipment, with initial deliveries slated for 2026.
Fortescue CEO Dino Otranto and XCMG Chairman Yang Dongsheng announced the partnership at the Bauma China trade event.
“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.
He added, “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.”
Yang Dongsheng said, “XCMG is dedicated to long-termism and sustainable development, offering high-end, intelligent and green ‘product + scenario’ full life cycle solutions to global customers. The company has achieved green electrification across its entire product range, with new energy products accounting for 18 percent of revenue, leading the industry’s green and low-carbon transformation. XCMG and Fortescue have formed a long-term partnership based on ‘value resonance, cultural resonance and win-win cooperation’. This collaboration will significantly contribute to global environmental protection and the development of a green, sustainable economy.”
