Fortescue shares climb on $4.1b Liebherr deal, China stimulus
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More news: Fortescue shares climbed on the ASX after the mining giant signed a $4.06 billion partnership with global equipment manufacturer Liebherr to jointly develop and validate a range of zero emission mining solutions.
Fortescue shares were up 6.1% to $19.09 by 1:30pm AEST, making it the third best performing stock across the ASX.
Billionaire Andrew Forrest's mining group joined a broader surge by Australian miners, which were boosted by new policy measures announced by China’s central bank on Tuesday.
Fortescue signs $4.1b deal for zero emissions equipment
The news: Mining giant Fortescue has signed a USD2.8 billion ($4.06 billion) partnership with global equipment manufacturer Liebherr to jointly develop and validate a range of zero emission mining solutions.
The numbers: Fortescue said the new deal builds on the partnership established between the two companies in June 2022, and increases the total number of machines to be supplied by Liebherr from 120 haul trucks to around 475 zero emission machines.
Fortescue is expected to purchase approximately 360 autonomous battery electric trucks, 55 electric excavators and 60 battery powered dozers, representing about two thirds of the current mining fleet at Fortescue's operations.
The total value of the partnership, comprising the supply of machines by Liebherr and the battery power system from Fortescue Zero, is "up to USD2.8 billion", the company said.
Fortescue said its mining fleet consumed around 450 million litres of diesel in FY24 and accounted for 51% of its Scope 1 emissions.
The context: Fortescue called the deal "the single largest equipment deal" in Liebherr's 75-year history and Fortescue's single largest contract ever.
The partnership is expected to create "one of the world's largest zero emission mining fleets" and represents "a major breakthrough in the pursuit of a mining industry no longer reliant on fossil fuels," it said.
What they said: "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," said Fortescue's executive chair Andrew Forrest.
"The green solutions we need are here today, and Fortescue Zero is supplying them and rolling them out across our massive mining operations.
"... We invite all companies in the mining, heavy industry and haulage sectors to join us."
The source: ASX announcement
