“In our industry,” Perenti’s head of mining electrification and technology, Darren Kwok, told MINE Australia, “we want to understand something before we productionise it.” He was discussing how miners could rapidly decarbonise their operations through electrification, now that constraints surrounding the readiness and scale of the technology are on the way to being addressed.
Many companies are on the path to electrification of their mining fleet. For some, it is happening quickly, while others are holding back as they develop that understanding Kwok spoke of. However, somewhere in their vista, many mine operators and owners see this new age of operations coming.
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“Globally, demand has grown rapidly,” ABB’s global head of mobile e-Power, Fabiana Cavalcante, says when asked about the current appetite for battery-powered mining vehicles. “While sustainability goals are helping drive that momentum, the real catalyst for many operators is cost,” she continues.
In this instance she is speaking of operating expenditure (opex) rather than capital expenditure (capex). Mining companies are looking – as ever – to reduce costs and increase efficiencies.
Australia-based specialist law firm Gilber + Tobin says that in 2025, the metals and mining sector is facing a “perfect storm” – geopolitical shifts, financial uncertainty, technological evolution and fluctuating environmental, social and governance (ESG) demands. However, it continues, “the mining companies that thrive will be those that balance profitability with sustainability, efficiency with responsibility and innovation with adaptability”.
Reducing opex: a drive to electrify mining trucks
The drive to electrify mining operations is boosted by increasing research and real-world evidence that supports what 10–15 years ago had largely been a hypothesis: electrification can lower opex, increase efficiencies, reduce environmental impact and enhance worker safety.
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By GlobalDataDiesel-powered vehicles and machinery are the biggest contributors to emissions at mine sites, with GlobalData projecting that mobile diesel accounts for 25–90% of scope 1 emissions at surface mines. With the push for decarbonisation growing and deadlines getting ever closer, it is clear that vehicles and machinery are a critical part of the solution.
Gains are not limited to emissions: lower opex through decreased fuel costs and reduced maintenance are further benefits of an electrified fleet. The Electric Mines Consortium’s (EMC) 2020–24 report confirms this; through its models and scenario analyses it concludes there is a strong positive financial return for electrification, with net present cost cut to just 56% of a diesel-powered equivalent scenario.
“Battery-electric vehicles offer a clear path to reducing total cost of ownership,” says Cavalcante. She adds that cost reductions come from lower fuel consumption, simpler maintenance and extended asset life.
ABB suggests these are benefits Australia’s mining companies are keenly aware of, citing its mining modernisation report, which found that 73% plan to electrify at least 25% of their fleets by 2030, outpacing the global average. “That reflects a strong appetite for reducing not only emissions but fuel, maintenance and ventilation costs,” Cavalcante continues.
There is one stumbling block identified in the EMC’s report: “The financial return [of investing in electrification] is a hurdle for many in the industry, due to the required capital investment and uncertainties around future operational performance.”
There may be a solution, however, one that ABB has already proven can work: retrofitting diesel-fuelled mining trucks to battery-electric.
Advantages of a haul truck retrofit
Last year, ABB signed off on a retrofit of a 30-year-old diesel-fuelled Euclid R85B haul truck to fully electric in what it called a “world first” for its size.
The truck, deployed at the Nuh Cement Kocaeli-Körfez mine in Turkey, was a real-world demonstration of how total cost of ownership (TCO) benefits and sustainability can align, according to Cavalcante.
The retrofit saves approximately 100,000 litres of diesel annually, cutting 245 tonnes of CO₂ emissions over the same period. “But the bigger business case is economic: fuel savings, reduced maintenance due to fewer moving parts and extended vehicle life without the capital outlay of purchasing new equipment,” she argues.
Cavalcante adds that by upgrading the drivetrain, instead of replacing the truck, miners can defer capex for years while improving performance. The shift to battery-electric trucks can also improve productivity through smoother torque and acceleration, meaning faster cycle times and better utilisation.
“When you combine fuel savings, reduced servicing and longer uptime, the lifetime cost of an electrified asset is often 25–50% lower than its diesel counterpart,” Cavalcante says. “And yes, emissions reductions and air-quality improvements are critical – but for most operators, it is the bottom line that drives the business case.”
Many mines would find that the truck retrofit pays for itself in a few years, particularly when volatile diesel prices and ESG incentives are factored in.
It seems the proposition is gaining traction. Last year, Perth-based Electric Power Conversion Australia introduced the world to its “Green Machine”, a battery-electric retrofit of a Caterpillar 777 mine dump truck. This vehicle can run for up to eight hours on a full charge, and recharge in less than an hour using smart charging technology. The company says it has committed to converting up to 70 trucks a year.
Total cost of ownership considerations
For mines and mine owners considering the potential of a retrofit, TCO modelling is key. Considering its cost versus continued diesel operation is important, factoring in fuel price trends, expected battery life, service intervals, energy costs and carbon penalties. “In many cases, the maths is already in favour of electrification,” Cavalcante says.
There are other factors to consider too, including:
- the haul profile, with consistent, moderate-distance cycles ideal for battery-electric vehicles
- infrastructure including on-site charging stations, possible grid upgrades or renewable integration
- the downtime of the vehicle during its refit, which can sometimes be months.
Converting a fleet of trucks together can simplify things and enhance cost benefits, says Cavalcante.
It is also important to build a plan that aligns with your broader fleet strategy. “Is retrofitting a stepping stone to full electrification? Can the infrastructure serve future electric additions?” are two questions.
Retrofitting as an option in Australia
One element that contributed to Nuh Cement and ABB’s retrofit success was the positioning of the mine in Turkey. Fully loaded, the truck travelled downhill at an average gradient of 18–20%, introducing the prospect of regenerative braking to recharge the battery during descent. Once unloaded, it could head back up using the regenerated electric power.
Mining regions like Western Australia do not necessarily offer these same landscapes. Therefore, larger batteries or optimised charging schedules may be needed to compensate. “Climate also matters,” says Cavalcante. “In hot or cold zones, thermal management of the battery is essential to protect cycle life and efficiency. But regardless of terrain, the fundamental TCO case for retrofitting – fuel savings, maintenance cuts and asset life extension – still holds.”
Australia also offers a set of other, unique, considerations, but those challenges also offer opportunities, according to ABB.
Remote locations, with sites hundreds of kilometres from grid infrastructure, actually “opens the door for renewable microgrids, which can cut opex and carbon emissions together”, Cavalcante says.
Other issues include the degradation heat and dust bring to batteries, which means ruggedised solutions with advanced cooling systems are essential.
Finally, moving materials over several kilometres – frequent in Australia – means a well-planned charging solution that offers fast charging, battery swapping or charging at key points in the cycle is critical.
With the like of Nuh Cement, EPAC and others embarking on a more innovative and likely cheaper path to some form of electrification, it seems the route to mining’s more efficient and sustainable future may have some unexpected turns along the way, with retrofitting now clearly signposted. However, retrofitting should not be seen as a compromise; it is often the smartest financial move.
“You preserve capital by upgrading instead of replacing, you cut your operating costs dramatically and you futureproof your operations against rising fuel costs and emissions regulations,” says Cavalcante. “It is good for the planet – but it is even better for your bottom line.”
