How XCMG’s Equipment will Support Fortescue’s Net Zero Goals
Battery electric loaders, dozers, water carts and graders are set to support Fortescue’s iron ore operations in Pilbara, Australia from 2026.
Chinese heavy machinery manufacturer XCMG signed a deal with Fortescue in November 2024 to provide the zero emission equipment.
Fortescue's Chairman Dr Andrew Forrest and Metals and Operations CEO Dino Otranto have visited Xuzhou to see the first machines coming together.
“We’re moving rapidly to decarbonise our Pilbara iron ore operations and eliminate our Scope 1 and 2 terrestrial emissions by 2030,” Dino said when the deal was announced.
“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.
“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.”
Fortescue’s sustainability efforts
“Sustainability has been at the heart of Fortescue since we were founded in 2003,” the company’s website says.
The company says its Real Zero strategy goes beyond net zero to achieve zero emissions without the use of carbon credits or offsets.
From 2023, Fortescue’s transition plan says that it no longer purchases voluntary carbon offsets for Scope 1 and 2 emissions.
It aims to reach this goal by 2030.
The battery electric vehicles provided by CXMG are part of this strategy, alongside a US$2.8bn partnership with Liebherr for 475 zero emission machines.
Fortescue’s climate transition plan says that the company is looking to transform itself into an integrated green technology, energy and metals business, including hydrogen systems.
Nearly all of the company’s Scope 3 emissions come from steel manufacturing, an industry that relies heavily on fossil fuels including coal which is used both as a fuel and feedstock.
The process of transforming iron ore into steel is energy intensive, requiring extremely high temperatures.
To tackle this, Fortescue’s transition plan says that the company plans to explore technologies to improve the emissions intensity of this process and demonstrate green metal feasibility through its Green Metal Project in the Pilbara region.
About XCMG
XCMG (Xuzhou Construction Machinery Group) is a Chinese heavy machinery manufacturer.
Founded in 1943, its products are sold in more than 280 countries around the world.
XCMG’s 2024 Sustainability Report shows that it reduced its water consumption by more than 375,000 tonnes and used 13.63% clean energy.
It also launched 21 new energy product lines in 2024 including electric excavators, hydrogen powered mining trucks and hybrid cranes.
XCMG’s deal with Fortescue, expected to be worth more than US$400m, is set to eliminate millions of litres of fossil fuels from the business’ iron ore operations.
Yang Dongsheng, Chairman at XCMG, said: “XCMG is dedicated to long-termism and sustainable development, offering high-end, intelligent and green ‘product and 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% 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.”
