IMS Oz Ventures Pty Ltd, a subsidiary of Kalgoorlie-based mining services and resource asset management company, MLG Oz Limited, has signed a binding agreement with Mick Murray Welding NT Pty Ltd (MMW) to establish a 50/50 joint venture to commercialise a next-generation hybrid electric road train (HRT).
MMW is an Australian-owned specialist heavy trailer manufacturer with more than 35 years’ experience designing, manufacturing and supporting transport and mining equipment for demanding Australian operating conditions.
A proprietary product built for Australian mining conditions, the HRT combines a purpose-built power trailer, three heavy-duty electric drive axles, a 200kWh buffer battery and is initially powered by diesel generation moving to full battery power supply as battery technology advances. It is engineered specifically for the payload, duty cycle and remote terrain demands of Australian off-road mining haulage operations.
A key advantage of the HRT’s design is its ability to support deployment in remote mining environments without the need for fixed charging infrastructure, providing a practical pathway to lower-emission haulage across mine sites where grid power or large-scale battery charging is not readily available.
MLG and MMW have a 15-year commercial relationship, during which MMW has established itself as a key trailer partner to MLG’s Western Australian and Northern Territory operations. The HRT program is the most significant collaboration undertaken between the parties to date, and the JV consolidates the intellectual property developed in relation to the HRT program into the JV entity.
The HRT is being developed in phases, beginning with the hybrid diesel prototype currently in build and progressing through to a fully battery-electric road train combination.
With off-road haulage a high-capital, competitive market in which payload uplift and emissions performance are increasingly decisive in tender outcomes, MLG’s objectives for the JV are to position it to:
> Deploy higher-payload, lower-emissions equipment into its own fleet at a materially advantaged transfer price relative to third-party customers;
> Capture 50 per cent of the profit from third-party sales of the product into the broader Australian mining sector;
> Differentiate its tender offering to clients with published decarbonisation and Scope 1 emissions reduction commitments; and
> Partner with an established and reputable heavy trailer manufacturer, while retaining direct strategic and operational input into the design and development of the technology to ensure the product is fit-for-purpose in Australian mining conditions.
MLG retains a preferred pathway to access and deploy the product within its own fleet.
MLG’s capital commitment to Phase 1 has been approximately $1.2 million, funded from existing cash reserves, to progress the initial HRT unit into testing. Further capital will be considered by the JV board on satisfaction of the applicable Phase Gate criteria.
MLG CEO Mark Hatfield says the JV is a “defining moment” in MLG’s product strategy. “We are investing alongside one of Australia’s most respected trailer manufacturers to build proprietary technology that aims to materially improve payload and emissions performance, two key drivers of efficiency and value within our haulage operations.
“For our clients, our vision is that the Hybrid Road Train could offer a direct pathway to reducing their Scope 1 emissions from heavy haulage, supporting the decarbonisation commitments many have made to their own stakeholders.
“The technology also has the potential to reduce the number of assets required to perform haulage tasks on site, improving operational efficiency.
“This investment is a natural extension of MLG’s operating capability and our commitment to delivering smarter, more efficient solutions for our clients. By combining MMW’s proven engineering and manufacturing capability with MLG’s operational insight, client relationships and resources-sector execution experience, the JV is well positioned to progress the technology from prototype through to commercial deployment.
“MLG’s investment is measured, milestone-gated, and directed at building a competitive advantage in our haulage business. The 50/50 structure enables shareholders to participate in the commercial upside, both through the deployment within MLG’s own fleet and through third-party sales into the broader mining sector.”