Anglo American is in exclusive negotiations with First Mode Holding Inc (“First Mode”), and has agreed non-binding terms, to combine Anglo American’s nuGen™ Zero Emissions Haulage Solution (“ZEHS”) with First Mode, the specialist engineering technology company that partnered with Anglo American to develop the nuGen™ ZEHS (the “Transaction”).
The Transaction would include a capital investment by Anglo American in the combined business and is intended to accelerate the development and commercialisation of Anglo American’s nuGen™ ZEHS. The new combined business would retain the First Mode name as an independent business and prioritise developing nuGen™ ZEHS, building on three years of extensive development by Anglo American and First Mode.
Anglo American launched the prototype of its nuGen™ ZEHS hydrogen-powered mine haul truck at its Mogalakwena PGMs mine in South Africa on 6 May 2022 – the world’s largest designed to operate in everyday mining conditions. The agreement envisages that Anglo American will enter into an agreement with First Mode to decarbonise its global fleet of ultra-class mine haul trucks, of which approximately 400 are currently in operation, as well as provide critical supporting infrastructure such as refuelling, recharging, and facilitation of hydrogen production.
Anglo American also recognises its role in supporting broader decarbonisation objectives outside its own business. The technologies and capabilities that it has been developing as part of the nuGen™ project with First Mode present opportunities beyond Anglo American’s haul truck fleet, including across other industries that rely on heavy duty forms of transport, such as rail.
Anglo American acquired a 10% strategic equity interest in First Mode in 2021. The Transaction would include Anglo American making an additional capital investment in the combined business which, upon completion of the Transaction, would result in a majority shareholding. The balance of the equity interest at that time would be held by a number of First Mode’s founders and employees. In addition to accelerating the development and commercialisation of the ZEHS technology, the new combined business would allow strategic third parties to co-invest alongside Anglo American and First Mode, offering the opportunity to accelerate their own decarbonisation and participate in the potential offered by the clean ZEHS technology.
The Company has a primary listing on the Main Market of the London Stock Exchange and secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the Namibia Stock Exchange and the SIX Swiss Exchange.
nuGen™ ZEHS
Conceived as part of Anglo American’s FutureSmart Mining™ programme, nuGen™ ZEHS is an end-to-end solution to decarbonise heavy duty transport and includes hydrogen production, on-site storage, ultra- heavy duty refuelling and hydrogen-battery hybrid powertrains to replace incumbent fossil fuel technology. With diesel emissions from its mine haul truck fleets accounting for 10-15% of Anglo American’s total Scope 1 emissions, and haulage trucks accounting for approximately 80% of diesel emissions at open pit mines, nuGen™ ZEHS will play an important role in delivering not only Anglo American’s target of carbon neutral operations by 2040, but also supporting the decarbonisation of the mining industry, with potential across other industries.
First Mode
First Mode is a creative engineering company building the barely possible to enable a sustainable future for everyone. We design and deliver critically needed products and technologies focused on zero- emission mobility, decarbonisation of heavy industry, and production and distribution of green hydrogen. Our more than 200 engineers and other employees in Seattle, USA and Perth, Australia empower our clients to leverage cutting-edge solutions to achieve their sustainability objectives and help our planet survive and thrive. First Mode customers currently make use of a variety of OEM platforms and site infrastructure. The nuGen™ ZEHS makes use of prior investments and fleets, offering the optimal mix of technologies depending on each site. These variations will include battery, hydrogen, and hybrid systems, with the ability to integrate into trolly assist and autonomy programmes.
Anglo American
Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers – safely and sustainably.
As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and steelmaking coal, and nickel – with crop nutrients in development – we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people’s lives. www.angloamerican.com
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