In a landmark move that underscores the accelerating shift towards sustainable mining practices, Chinese heavy equipment manufacturer XCMG has struck a record-breaking deal with Australian mining titan Fortescue. The agreement, valued at billions, will see XCMG deliver over 200 of its 240-tonne electric haul trucks to Fortescue, marking one of the most significant steps yet in the decarbonization of the mining sector.
XCMG, known for its innovative approach to smart mining, has rapidly established itself as a leader in the production of high-quality electric equipment. The company’s reputation was further bolstered when it pioneered the “world’s first” best-practice model for smart mining at China Huaneng’s Yimin Mine and won the 2025 Decarbonizing Mining Award. Ranking among the world’s top four open-pit heavy equipment makers, XCMG is now poised to make a substantial impact on the global mining industry with this latest deal.
The strategic cooperation agreement was signed in a grand ceremony in Beijing earlier this week. Fortescue, one of the world’s largest iron ore producers, sees this deal as a pivotal moment in the quest for full decarbonization. Dr. Andrew Forrest, Fortescue Executive Chairman and Founder, emphasized the importance of global cooperation in achieving this goal. “The world once benefited from open trade and cooperation – now it is divided,” he explained. “Fortescue is showing that industry can help glue back that multilateral spirit. Not through rhetoric, but through practical alliances that prove heavy industry can follow a new path – one where profits rise as emissions fall.”
Forrest also highlighted China’s rapid scaling and manufacturing of green technologies, stating, “China is scaling and manufacturing green technologies at unprecedented speed, and our partnerships give Fortescue access to that capability.”
The XCMG 240T electric haul trucks at the heart of this deal are engineering marvels. Capable of handling payloads over 500,000 lbs. and with a gross vehicle weight rating of nearly 420 Imperial tons, these trucks are among the most powerful and capable EVs on the planet. Their 1,900 kW (2,550 hp) electric drive system allows them to climb 17% grades and reach speeds up to 56 km/h (35 mph), ensuring that emissions are slashed without compromising on performance.
This deal is not just significant for its size and scope but also for its potential to reshape the global mining landscape. Fortescue has already saved hundreds of millions in fuel costs, and this agreement is set to make a substantial dent in global diesel demand. The ripple effects of this deal could be far-reaching, influencing other mining companies to adopt similar sustainable practices and accelerating the transition to green mining equipment.
As the mining industry continues to evolve, partnerships like this one between XCMG and Fortescue will be crucial in driving innovation and sustainability. The deal serves as a testament to the power of collaboration and the potential for heavy industry to lead the way in decarbonization. It also highlights the growing importance of China in the global green technology market, as the country continues to scale and manufacture these technologies at an unprecedented pace.
In the coming years, the mining sector will likely see more such deals, as companies strive to meet increasingly stringent environmental regulations and consumer demands for sustainable practices. This shift towards decarbonization is not just a trend but a necessity, and the XCMG-Fortescue deal is a significant step in that direction. As the industry watches closely, the success of this partnership could pave the way for more innovative and sustainable solutions in the future.