Fortescue (ASX:FMG) has signed a US$2.8 billion ($4 billion) deal with Switzerland-based equipment manufacturer Liebherr under which the two companies will jointly develop a range of zero-emission mining solutions.
The agreement represents a “significant expansion” to the partnership that was originally announced in June 2022, and is expected to increase Fortescue’s Liebherr-supplied mining fleet from 120 haul trucks to roughly 475 zero-emission vehicles.
This will include 360 autonomous electric trucks, 55 electric excavators, and 60 battery-powered dozers, representing around two-thirds of the current mining fleet across Fortescue’s iron ore operations in Australia.
Fortescue notes that its mining fleet consumed approximately 450 million litres of diesel in the 2024 financial year, accounting for 51% of the company’s direct emissions.
As such, the new equipment will be driven by a battery power system developed by Fortescue Zero.
“This is an important next step in our 2030 Real Zero target — to eliminate emissions from our terrestrial iron ore operations by the end of the decade,” Fortescue Chairman Andrew Forrest says.
“The world needs Real Zero now — it simply cannot afford to wait. The green solutions we need are here today, and Fortescue Zero is supplying them and rolling them out across our massive mining operations.”
The phased supply of the equipment began in October 2023 and is expected to be complete by 2030. At a total value of US$2.8 billion, the deal represents Liebherr’s largest-ever single equipment deal in its 75-year history, as well as Fortescue’s single largest contract ever.
“We have more than 200 autonomous trucks across our mine sites, travelling the equivalent of two trips to the moon and back each month,” Fortescue CEO Dino Otranto adds.
“It is imperative that they operate efficiently and at maximum capacity.”
Shares in Fortescue were up 5.56% to $19 a share as of 12:50 pm AEST.
Write to Oliver Gray at Mining.com.au
Images: Fortescue
