PEORIA, Ill., July 5, 2011 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) and Cat Dealer WesTrac have signed a Memorandum of Understanding (MOU) with Fortescue Metals Group (ASX: FMG) based in Perth, Australia to implement an autonomous mining solution that is focused on delivering productivity and performance gains for Fortescue's new Solomon iron ore mine. This solution will comprise a number of elements, including the full Cat® MineStar™ System technology suite and an initial fleet of 12 Command for hauling autonomous 793F trucks to be implemented in third and fourth quarter 2012.  At full operational capacity, it is anticipated the Solomon mine will have approximately 45 autonomous trucks by 2015.  

"This agreement confirms and validates Caterpillar's commitment to our customers by producing state-of- the-art solutions that provide a significant step change in mining productivity and safety," said Chris Curfman, Vice President, Caterpillar Global Mining. "By working closely with mining customers, we are able to tailor a solution to their specific business needs using Caterpillar's broad range of products, technology and services.  This collaboration will also positively impact sustainability at Fortescue's Solomon mine through reduced environmental footprint and machine efficiencies."  

"Innovation is at the heart of Fortescue's values," said Fortescue's Chief Operating Officer, Neville Power. "It is how we started this business through different exploration and mining practices, and it will be critical in how we implement our extensive growth aspirations.  One of the key growth challenges we face is around availability of people and the need to best utilize this valuable resource.  As such, it is incumbent upon us to look at new ways of doing things."

"Partnering with the world's leading mining equipment supplier and their most accomplished dealer to develop the automation of our mining operations is a great outcome," Power added. "The expected roll out is more than just a trial with the plan to get to 12 machines by 2012 and then growing to 45 by 2015.  It is the unique capabilities that the three parties bring to this agreement that will deliver the world's leading autonomous mining solution at Solomon."

Caterpillar and WesTrac will work together to implement and operate this autonomous solution for Fortescue.  The two organizations together will provide product and technology implementation, consulting and change management services to Solomon mine, as well as operate the complete autonomous system once it is implemented.  In addition, WesTrac will be fully responsible for supporting the large Caterpillar mining fleet at Solomon with machine and technology technicians and support personnel.

"For the past 10 years, WesTrac has been a leader in selling, implementing and supporting mining technology products that help mining companies achieve improved productivity and asset utilization.   By marrying our deep Cat product expertise with these 'building block' technologies, we are well positioned with Caterpillar to provide Solomon mine with a turn-key autonomous mining solution," said WesTrac Group CEO, Jim Walker.

Caterpillar has been delivering mining technologies and systems for more than 20 years that have improved site safety, machine productivity and equipment utilization. The world's first autonomous truck was demonstrated by Caterpillar in the mid 1990's.  At MINExpo 2008, Caterpillar articulated its vision for autonomous mining in the future that includes autonomous drilling, autonomous dozers and autonomous underground mining equipment working with other manned equipment.  The implementation of Command for hauling trucks at the Solomon mine is a significant step in executing Cat's strategy to transform how mine sites will operate in the future.

About Caterpillar:

For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2010 sales and revenues of $42.588 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.

About Seven Group:

Seven Group Holdings – a leading Australian diversified operating and investment company - listed on the Australian Securities Exchange in May 2010 following shareholder approval for the merger of Seven Network Limited and WesTrac Holdings to create a new diversified operating and investment group.  The new company delivers shareholders a company with a market-leading presence in media and the resource services sector, as well as an expanding business presence in China.  Seven Group comprises WesTrac Group; a 30 percent shareholding in Seven West Media, Australia's largest multiple platform media company comprising Australia's leading television network, Seven Network, West Australian Newspapers, the leading media group in Western Australia Pacific Magazines, one of Australia's two largest magazine publishing companies, and Yahoo!7.  Seven Group has significant shareholding in Prime Media and Consolidated Media Holdings, which has a leading presence in subscription television through a 25 percent shareholding in Foxtel and a 50 per cent shareholding in Premier Media Group.  Seven Group is also a cornerstone investor in the recently listed Agricultural Bank of China.

About Fortescue Metals Group:

Fortescue is the New Force in Iron Ore and has joined the world's leading producers of iron ore.  Since the Company was formed in 2003, its extraordinary growth has been unparalleled. Listed in the S&P/ASX 50 share index, Fortescue has firmly established itself as one of the world's largest producers and sea-borne traders of iron ore.

Forward-Looking Statements

Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are subject to known and unknown factors that may cause Caterpillar's actual results to be different from those expressed or implied in the forward-looking statements. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements.  All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and Caterpillar does not undertake to update its forward-looking statements.

It is important to note that Caterpillar's actual results may differ materially from those described or implied in its forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets Caterpillar serves; (ii) government monetary or fiscal policies and government spending on infrastructure; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) Caterpillar's and its customers', dealers' and suppliers' ability to access and manage liquidity; (v) political and economic risks associated with our global operations, including changes in laws, regulations or government policies, currency restrictions, restrictions on repatriation of earnings, burdensome tariffs or quotas, national and international conflict, including terrorist acts and political and economic instability or civil unrest in the countries in which Caterpillar operates; (vi) Caterpillar's and Cat Financial's ability to maintain their respective credit ratings, material increases in either company's cost of borrowing or an inability of either company to access capital markets; (vii) financial condition and credit worthiness of Cat Financial's customers; (viii) inability to realize expected benefits from acquisitions and divestitures, including the acquisition of Bucyrus International, Inc.; (ix) the possibility that the acquisition by Caterpillar of Bucyrus International, Inc. does not close for any reason, including, but not limited to, a failure to obtain required regulatory approvals; (x) international trade and investment policies, such as import quotas, capital controls or tariffs; (xi) the possibility that Caterpillar's introduction of Tier 4 emissions compliant machines and engines is not successful; (xii) market acceptance of Caterpillar's products and services; (xi) effects of changes in the competitive environment, which may include decreased market share, lack of acceptance of price increases, and/or negative changes to our geographic and product mix of sales; (xii) union disputes or other employee relations issues; (xiii) Caterpillar's ability to successfully implement the Caterpillar Production System or other productivity initiatives; (xiv) adverse changes in sourcing practices of our dealers or original equipment manufacturers; (xv) compliance costs associated with environmental laws and regulations; (xvi) alleged or actual violations of trade or anti-corruption laws and regulations; (xvii) additional tax expense or exposure; (xviii) currency fluctuations, particularly increases and decreases in the U.S. dollar against other currencies; (xix) failure of Caterpillar or Cat Financial to comply with financial covenants in their respective credit facilities; (xx) increased funding obligations under our pension plans; (xxi) significant legal proceedings, claims, lawsuits or investigations; (xxii) imposition of operational restrictions or compliance requirements if carbon emissions legislation and/or regulations are adopted; (xxiii) changes in accounting standards or adoption of new accounting standards; (xxiv) adverse effects of natural disasters; and (xxv) other factors described in more detail under "Item 1A.  Risk Factors" in Part I of our Form 10-K filed with the SEC on February 22, 2011 for the year ended December 31, 2010.  This filing is available on our website at www.caterpillar.com/secfilings

SOURCE Caterpillar Inc.

Copyright 2011 PR Newswire

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