Construction equipment manufacturer Caterpillar Inc. (NYSE: CAT) will be supplying Quebec’s Nouveau Monde Graphite (NYSE: NMG) (TSX-V: NOU) with a fleet of zero-emission equipment for its Matawinie graphite mining operation north of Montreal.
On Thursday, NMG announced that it has signed supply agreements with Caterpillar for the equipment. Under the agreement, NMG will receive a zero-exhaust emission fleet for the mine, supporting infrastructure and service.
During the pre-production phase and early production years, regular CO2-emitting equipment will be utilized to support commercial operations. As Cat’s zero-emission machines become available, they will gradually replace the old equipment at Matawinie.
The companies aim to complete the transition to 100 per cent electric equipment at the site by year five of commercial operations there. It is estimated that the mine will have a 25-year lifespan and an average recovery rate of 93 per cent.
The agreements cover a range of equipment, including hydraulic excavators, mining trucks, wheel loaders, dozers and motor graders. Additionally, they also encompass charging and energy storage infrastructure and equipment maintenance services.
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The news follows the two companies signing a collaboration agreement in 2021, agreeing that Caterpillar would begin developing and testing electric equipment for the project. Through the partnership, NMG aims to establish the world’s first 100 per cent electric open-pit mining operation.
Construction at the mine commenced in the summer of 2021. Caterpillar showcased its first heavy-duty electric mining truck last fall in Texas.
“Not only will we benefit from Caterpillar’s stellar expertise, renowned products, and latest technological developments, but our team will also be at the forefront of the electric revolution in the sector, sharing insight, testing equipment for further optimization, and providing battery materials to support electrification beyond our mine,” said Eric Desaulniers, CEO, Founder and President of NMG.
“This project is an exciting one as it highlights what is possible when an effective energy transition roadmap is implemented that bridges the traditional product line to an integrated, electrified site of the future,” said Denise Johnson, President of the Caterpillar Group.
NMG’s stock dropped by 4.09 per cent Monday to US$4.03 and Caterpillar’s shares rose by 1.25 per cent to US$223.13 on the New York Stock Exchange.