XCMG awarded US$400 million contract from Fortescue to supply zero emissions mining equipment

At Bauma CHINA 2024, the world’s premier construction machinery event in Shanghai, XCMG and Fortescue announced their groundbreaking partnership.

The contract, with a potential value of more than US$400 million, marks XCMG’s largest contract outside of China for mining equipment and will see battery electric wheel loaders, wheel dozers, water carts, float prime movers and graders delivered to Fortescue’s Pilbara mining operations by 2030.

Mr. He Minghu, General Manager of Oceania Region of XCMG International Headquarters, and Ms. Rebecca Hayward, Director Global Procurement and Contracts of Fortescue signed the contract between XCMG and Fortescue, under the witness of Yang Dongsheng, Chairman of XCMG, Dino Otranto, Fortescue Metals CEO, and nearly a thousand customers and guests on site.

At the signing ceremony, Mr 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 per cent of revenue, leading the industry’s green and low-carbon transformation’

“Since last year, XCMG has fully launched its “No. 1 Project” for intelligent transformation, digital transformation and networking. This initiative promotes a shift from traditional, single-point and local informatization to a global, full value chain and comprehensive business domain digital transformation. XCMG is committed to building a smart, green, and world-class company.

“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.”

“We’re moving rapidly to decarbonize 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,” Mr. Otranto said.

“We’re thrilled to partner with XCMG to supply and support cutting-edge battery electric mining equipment, marking another significant step forward in our decarbonization 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 decarbonize.”