XCMG signs China’s largest green mining equipment export deal

Delegates from XCMG and Fortescue at the signing ceremony in Beijing. Photo: XCMG

The deal, formally announced by Fortescue during the United Nations General Assembly in New York on 26 September, will see XCMG deliver 150 to 200 units of 240 tonne battery-electric trucks between 2028 and 2030.

The trucks will supply nearly half of Fortescue’s planned fleet for its Pilbara iron ore operations, supporting the company’s target of achieving zero-carbon emissions for land-based operations by 2030.

A signing ceremony was held in Beijing, where Yang Dongsheng, chairman of XCMG and XCMG Construction Machinery Co., Ltd, and Dr Andrew Forrest, executive chairman of Fortescue, jointly signed the equipment order.

The agreement builds on previous collaborations between the two companies. At Bauma China in Shanghai last year, XCMG and Fortescue signed an order which at the time was the largest export contract for Chinese electric mining machinery.

XCMG said the deal will see both companies “advance high-quality, sustainable development across the global mining sector.”

Fortescue added that it is part of a broader global strategy to accelerate industrial decarbonisation and expand the use of green energy technologies in mining.

Alongside XCMG, the company has agreements with BYD, LONGi and Envision Energy, and recently acquired Spanish wind technology firm Nabrawind.

Dr Forrest said the partnerships are key components of Fortescue’s “Real Zero” plan, which aims to phase out fossil fuels across its land-based iron ore operations by 2030.

He said, “China is scaling and manufacturing green technologies at unprecedented speed and our partnerships give Fortescue access to that capability.

“Meanwhile, through Nabrawind in Spain, Liebherr in Germany and the United States, Fortescue Zero in the United Kingdom, and Fortescue operations in the Pilbara in Western Australia, we are building a global R&D and production network.

“This is a truly multilateral collaboration that draws on the best ideas and manufacturing capacity to deliver the lowest cost energy and tackle climate change.”