ASX-listed Emeco Holdings has confirmed a five-year agreement to provide aftermarket support for XCMG Mining Equipment in Australia.
China’s Xuzhou Construction Machinery Group Co, which claims to be the world’s third largest construction equipment manufacturer after Caterpillar and Komatsu, won its largest mining equipment order outside China with a plus-US$400 million deal announced with iron ore major Fortescue last November.
The first of more than 100 XCMG machines to be supplied to Fortescue in Western Australia are expected to arrive in the state in the middle of next year.
XCMG says battery electric wheel loaders, wheel dozers, water carts, float prime movers and graders should be delivered to Fortescue’s Pilbara iron ore mining operations by 2030. The Chinese company flagged the partnership with Emeco in May.
Emeco says it will work with XCMG to “develop electric capabilities and ensure detailed support plans are in place for long term mining operations and fleet maintenance”.
“Our partnership with XCMG is our first step into next generation battery-electric technology and provides a pathway to become a leading Australian provider of maintenance services for battery-electric mining fleet,” Emeco CEO Ian Testrow said.
Force Equipment, an Emeco subsidiary, will be XCMG’s preferred services provider in Australia under their deal. Force’s existing national workshops and labour footprint would be used “in partnership with XCMG’s technicians, parts and equipment inventory”, the company said.
Emeco share price is up more than 5% over the past five days to 80c, capitalising the company at about $412 million.
