Fortescue and Liebherr ink USD 2.8B deal for zero emission mining fleet

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Image credit: Liebherr

Fortescue announced an expansion of its partnership with global equipment manufacturer Liebherr, aimed at developing and validating a range of zero-emission mining solutions. 

This move builds on a previous collaboration initiated in June 2022 and increases the total number of machines supplied by Liebherr to Fortescue to approximately 475.

The zero-emission equipment, powered by Fortescue Zero’s battery power system, represents a significant leap towards decarbonising the mining industry, Fortescue said in an ASX announcement.

Additionally, the two companies will deploy an autonomous battery-electric haulage solution for large-scale mining operations.

“This is an important next step in our 2030 Real Zero target – to eliminate emissions from our Australian terrestrial iron ore operations by the end of the decade,” stated Dr Andrew Forrest AO, Fortescue executive chairman. 

He emphasised the urgency of the project, saying, “The world needs Real Zero now – it simply cannot afford to wait.”

The expanded deal increases Liebherr’s previous commitment from 120 haul trucks to approximately 475 machines, including 360 autonomous battery-electric trucks, 55 electric excavators, and 60 battery-powered dozers. 

These machines will replace about two-thirds of Fortescue’s current mining fleet, which consumed approximately 450 million litres of diesel in FY24, accounting for 51 per cent of the company’s Scope 1 emissions.

Dino Otranto, Fortescue Metals CEO, highlighted the groundbreaking nature of the project: “The T 264 battery electric truck, powered by a Fortescue Zero battery power system, will be one of the first zero-emission solutions for mine haulage in operation globally.” 

He further added, “We have an enormous amount of expertise in autonomous haulage and have used that expertise to play a leading role in the development of this system.”

The total value of this partnership, which includes the supply of Liebherr machines and Fortescue Zero’s battery systems, amounts to USD 2.8 billion. 

According to Fortescue, it is not only its largest equipment deal to date but also the biggest in Liebherr’s 75-year history.

The equipment supply began in October 2023, with plans to complete the delivery by 2030. 

Fortescue has also developed a fast-charging solution to support the autonomous trucks, offering up to six megawatts of power and a 30-minute charge time.

“The fully integrated Autonomous Haulage Solution will be a game changer for us in reducing our carbon emissions,” noted Otranto.