Anglo American has signed a binding agreement with First Mode Holding to combine Anglo American’s nuGen Zero Emissions Haulage Solution with First Mode, the specialist engineering technology company that partnered with Anglo American to develop the nuGen ZEHS The Transaction, first indicated in June 2022, is intended to accelerate the development and commercialisation of Anglo American’s nuGen™ ZEHS. Anglo American acquired a 10% strategic equity interest in First Mode in 2021. The Transaction includes Anglo American making an additional capital investment of USD 200 million in the combined business to help fund the ongoing development of ZEHS which, upon completion of the Transaction, values the business in the order of $1.5 billion and results in Anglo American owning a majority shareholding in First Mode. The balance of the equity interest at that time will be held by a number of First Mode’s founders and employees. Upon closing of the Transaction, expected in January 2023, Anglo American will enter into a supply agreement with First Mode to decarbonise its global fleet of ultra-class mine haul trucks, of which approximately 400 are currently in operation, in support of Anglo American achieving its 2040 target for carbon neutral operations. The roll-out across Anglo American’s haul truck fleet over the next c.15 years is subject to the completion of agreed and committed studies across seven mine sites, certain performance and cost criteria, and relevant regulatory, corporate and shareholder approvals. The supply agreement also includes the appropriate provision of critical supporting infrastructure such as refuelling, recharging, and facilitation of hydrogen production. The new combined business retains the First Mode name and will 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 in May 2022 – the world’s largest designed to operate in everyday mining conditions.