Hitachi Construction Machinery

Tokyo, 1 March 2023—Hitachi Construction Machinery Co., Ltd. (TSE: 6305; “Hitachi Construction Machinery”) and First Quantum Minerals Ltd (TSX: FM; “First Quantum”) today announce that they have entered into a Letter of Intent (“LOI”) to advance the development of sustainable mining solutions at First Quantum’s flagship mining operations in Zambia.

A proof of concept (“POC”) will be implemented as part of the LOI; Hitachi Construction Machinery supplying the first of its full battery, rigid frame dump trucks (“battery dump truck”) fitted with an ABB Ltd (“ABB”) battery, on-board charger and associated infrastructure by the end of FY2023 for technological feasibility trials at First Quantum’s Kansanshi copper-gold mine operations, including the S3 expansion projected for commissioning and first production in 2025.

This partnership represents a significant milestone for both companies: Hitachi Construction Machinery accelerating the validation of its zero emission mining product as part of its technology roadmap, and First Quantum progressing towards reducing its operational greenhouse gas (GHG) emissions and achieving its long-term sustainability goals by applying this battery-electric technology at one of its largest mine sites.

Hitachi Construction Machinery and First Quantum have a long-standing relationship that will be further strengthened through this LOI and POC. The Kansanshi mine is ideally suited to these trials due to its existing trolley assist systems, which align with development of battery dump trucks. First Quantum currently operates 41 Hitachi Construction Machinery (diesel) trolley trucks at Kansanshi, meaning much of the required infrastructure for the battery dump truck is already in place.

Developed in collaboration with ABB, Hitachi Construction Machinery’s battery dump truck utilizes on-board energy storage and trolley systems to generate power. Via a pantograph, the battery dump truck connects to overhead power lines, drawing power to allow the truck to run. At the same time, the generated energy is used to charge the battery system. This is separate to the regenerated power from the retarder braking system which will generate a high level of charge during haul road descent.

“ABB is delighted to continue its collaborative partnership with Hitachi Construction Machinery through the supply of highly energy-efficient DC/DC converters, fitting state of the art traction batteries forming together the most efficient package to electrify rigid dump trucks,” said Fabiana Cavalcante, Head of eMobility for ABB’s Traction Division. “Together, we look forward to advancing our co-creation efforts to develop solutions that enable all-electric mine operations and support customers like First Quantum in the achievement of their sustainability ambitions.”

Applying a proven technology from its current trolley truck system to the battery dump truck has allowed Hitachi Construction Machinery to expedite the development of its product to market. The retrofittable system design is also an added advantage, allowing current diesel truck fleets to be converted in the future to utilize the battery system, offering scalable fleet capability, minimal operational impact and greater value for customers such as First Quantum.

First Quantum’s fleet of Hitachi Construction Machinery equipment includes 39 EH3500ACII and two EH3500AC-3 rigid dump trucks across its mining operations in Zambia, as well as several construction-sized machinery across global operations. A further 40 EH4000AC-3 dump trucks equipped with the latest HCM/Bradken robust tray designs are on order for first delivery to Kansanshi in 2023, to support its S3 expansion project as it’s scaled up. Six new EX5600-7E (electric) excavators equipped with Bradken Eclipse buckets and incorporating loss tooth detection technology are also to be supplied, demonstrating the company’s long-term commitment to reducing GHG emissions across its operations.

Continued collaboration through this battery dump truck trial is expected to directly contribute to ongoing optimization of technology, infrastructure, safety and onsite deployment strategies and processes for mining sector benefit as we approach a future of energy transition and increased demand for low-carbon equipment.

Beyond the mine site, the partnership is expected to facilitate significant investment in Zambia to deliver social and economic benefits. An in-country engine repair facility is planned for establishment, supported by both companies, which will provide an increase in employment and skills development opportunities within the local community.

■Comment from Sonosuke Ishii, Senior Vice President and Executive Officer, President of

 Mining Business Unit for Hitachi Construction Machinery   

“Hitachi Construction Machinery and First Quantum have a close and respectful working relationship – since their first equipment purchase in 2004 – and we are honored to cement this further through ongoing collaboration and support with the signing of this LOI. The battery dump truck represents the future, not only for the Hitachi Construction Machinery Group but for the mining industry as a whole, and we are pleased to establish this proving ground on an active mine site and work with First Quantum on advancing this zero emission solution. It’s one of the many solutions in development that will allow Hitachi Construction Machinery to contribute toward realizing a safe and sustainable society by solving critical issues related to carbon emissions reduction and climate change.”

■Comment from John Gregory, Director of Mining for First Quantum Minerals

“Innovation in mining is integral to First Quantum’s philosophy and we’re excited about this technology partnership with Hitachi Construction Machinery. Pit electrification is an area of focus for First Quantum as we seek productive, safe and profitable decarbonization of our mining activities in order to deliver lower carbon intensity copper that will be essential for the global energy transition. First Quantum has spent more than ten years implementing trolley assist technology with Hitachi Construction Machinery at Kansanshi, an area in which we are now industry leading. We see this as a technological evolution towards future commercialization of a practical equipment battery solution through the use of our advanced trolley infrastructure.

“Together with in-pit crushing and conveying and electric drilling, First Quantum saves an estimated 100,000 tonnes of CO₂ a year across our Zambian operations, while delivering improved productivity, cost savings and health and safety benefits. In collaborating with Hitachi Construction Machinery on battery dump trucks, we look forward to the next phase of pit electrification as we seek to further reduce our greenhouse gas emissions in line with our target of a 50% reduction by 2030.”

■Information about First Quantum’s Kansanshi mine operations, Zambia

Kansanshi is a copper-gold mine located near Solwezi in the North Western Province producing copper concentrate, anode and cathode. It has been in operation since 2005. It has two open pits as well as a copper smelter which processes concentrate from Kansanshi and the company’s Sentinel mine, also in the North Western Province. Operations are more than 85% powered by renewable energy from the Zambian national grid. In May 2022, the company approved the S3 expansion, with the project expected to ramp up through 2025, increasing copper production to approximately 200,000 – 250,000 tonnes per annum. In Zambia, First Quantum directly employs more than 10,000 people, more than 95% of whom are Zambian.

■Related information

・Press release announced on June 23, 2021

Joint Development of an Engineless, Full Battery Rigid Dump Truck with ABB

・Press release announced on March 30, 2021

Hitachi Construction Machinery and ABB sign Memorandum of Understanding to explore opportunities for mine operators to target net-zero emissions from mining machinery

・Corporate videos
Video of a diesel engine rigid dump truck with trolley

Video of Hitachi Construction Machinery’s battery dump truck

Hitachi Construction Machinery Co., Ltd., (TSE: 6305), headquartered in Tokyo, Japan, is a global Construction Machinery company with approximately 25,000 employees worldwide. Fiscal 2021 (ended March 31, 2022) consolidated revenues totaled 1,025 billion yen. Hitachi Construction Machinery will focus more than ever on the Construction and Mining Machinery Business, which includes Hydraulic Excavators, Wheel Loaders, Rigid Dump Trucks, Compaction Equipment, Applications and Mine Management Systems. For more information on Hitachi Construction Machinery, please visit the company’s website at https://www.hitachicm.com/global/

First Quantum Minerals Ltd (TSX: FM), is engaged in the production of copper, nickel, gold and silver, and related activities including exploration and development. The company has operating mines located in Zambia, Panama, Turkey, Spain, Australia and Mauritania. The company is progressing the Taca Taca copper-gold-molybdenum project in Argentina and is exploring the Haquira copper deposit in Peru. In 2022, the company produced 776,000 tonnes of copper and had more than 26,000 employees, subcontractors and consultants globally. https://first-quantum.com/