Hitachi Construction Machinery acquires equity holding in Envirosuite Ltd in Australia with the aim to reduce environmental impact at mining sites

Contributing to the optimization of the entire mine management by proposing real-time remote monitoring and predictive modelling of environmental impact

Tokyo, September 2, 2024 – Hitachi Construction Machinery Co., Ltd. (TSE: 6305, “Hitachi Construction Machinery”) acquire approximately 12% equity holding in Envirosuite Ltd (“Envirosuite”) for $10m AUD in Australia and became its largest single entity shareholder. This investment will be made in two installments, with the first investment in September acquiring approximately 11% of the company's shares, followed shortly by another investment for a total of approximately 12% of the company's shares. Envirosuite provides real-time environmental remote monitoring and predictive technology solutions for industrial operations. This collaboration with Envirosuite is a cornerstone of Hitachi Construction Machinery’s strategy to address global demand around ESG and greenhouse gas (GHG) challenges in Mining, leveraging Envirosuite’s Industrial technology, Hitachi Construction Machinery’s knowledge of Mining as well as the fleet management and digital mining solutions of Wenco, a wholly owned subsidiary of Hitachi Construction Machinery.

Mining sites operate 24-7, and improving the site environment for the safety and health of workers and reducing the environmental impact on local communities is essential for mining companies to achieve sustainable resource extraction.

Envirosuite is an environmental intelligence technology company that helps the mining, industrial, aviation, waste and wastewater sectors manage operational challenges to reduce risk and improve productivity while protecting and strengthening community and stakeholder relationships. Envirosuite’s powerful solutions combine operational data, evidence-based scientific methods and predictive meteorological models, and real-time monitoring of air quality, dust, noise, odor, vibration, and water quality to provide decision support on optimal operations management. For example, the Industrial platform leverages artificial intelligence to analyze detailed noise data and suggest to users what the cause of each noise event might be.

Envirosuite is the global full-service provider of environmental intelligence solutions and a leader in its target sectors. Using Envirosuite solutions, mining customers can reduce environmental impact and demonstrate responsible mining practices while achieving productivity goals.

Hitachi Construction Machinery’s strengths lie in various touchpoints across business areas that range from the mining (Pit) process, where mining machinery is used, to the mineral process (Plant), drawing on resources of Group companies. Notably, Wenco International Mining Systems Ltd. in Canada is a leading company in the development, sales, and maintenance of fleet management systems (“FMS”), which has introduced FMS, High Precision Guidance, Reliability, Safety and other technology solutions to nearly 150 mining sites around the world, centering on open-pit mines. In 2020, Hitachi Construction Machinery and Wenco have jointly developed ConSite Mine, which is a reliability service solution that remotely monitors mobile mining machinery around the clock. Together, the companies are honing solutions that lead to improved productivity and safety at mining sites while also reducing life cycle costs. Wenco has also acquired SmartCap Technologies Pty Ltd, which provides fatigue detection technology that utilizes brainwave and AI technology to enhance solutions that will help improve mine safety in 2021.

Going forward, funds from this strategic investment will be used to advance Envirosuite Industrial software solutions and market penetration particularly in the Mining sector, with a specific focus on delivering solutions to solve ESG and GHG challenges for Mining operators. Hitachi Construction Machinery will enhance solution proposals that lead to safety and reducing environmental impact while maintaining the productivity of mining sites by using Envirosuite’s solutions into their offerings.

Hitachi Construction Machinery Group plans to exhibit our digital solutions, including advanced ESG and Productivity technology partners, such as Envirosuite, at our Booth 8649 at MINExpo2024.

Hitachi Construction Machinery Group will strongly promote open innovation with various business partners and startups, and provide innovative solutions through a diverse range of touchpoints across the full spectrum of mining operations.

Comments from Envirosuite CEO Jason Cooper

We are thrilled to be launching into the top tier of global mining services with Hitachi Construction Machinery and their subsidiaries. Together, we expect to set new standards in operational management and environmental responsibility for the Mining industry globally which aligns strongly with both companies’ visions for a sustainable world. The $10 million investment and Collaboration Agreement represents definitive industry validation of our technology at the highest level, and will showcase our ability to help customers achieve their productivity and ESG goals through an innovative site-wide digital solutions approach. This is a significant untapped opportunity in the Mining industry.

Comments from Hitachi Construction Machinery Vice President and Executive Officer, President of Mining Business Unit Eiji Fukunishi

We are excited to be investing in a strategic relationship with Envirosuite. Their decades of experience and commitment to environmental and social responsibility while helping customers achieve their productivity goals aligns perfectly with Hitachi Construction Machinery’s vision for ‘ensuring a prosperous land and society for the future, and contributing toward realizing a safe and sustainable society’. Envirosuite’s culture of honesty, integrity and commitment to customers and the communities we all serve is the foundation of both of our businesses. Through this investment, we hope to leverage Envirosuite’s solutions, data scientists’ analytical capabilities, and its findings and know-how in subscription business in order to further refine Hitachi Construction Machinery’s solutions in the Mining business.

Overview of Envirosuite Ltd

Trademark notice

• "ConSite" is a registered trademark of Hitachi Construction Machinery Co., Ltd.

About Hitachi Construction Machinery Co., Ltd.

Hitachi Construction Machinery Co., Ltd. (TSE: 6305), headquartered in Tokyo, Japan, is a construction machinery manufacturer which globally deploys development, manufacturing, sales, and service businesses for its hydraulic excavators, wheel loaders, compaction equipment, and mining machinery, etc. In addition to its new machinery business, Hitachi Construction Machinery is expanding its "value chain businesses" of parts and services, remanufacturing (parts and machines), rentals, and used equipment as it aims to grow together with customers as a true solutions provider that offers innovative solutions to customers. As our vow to all stakeholders to achieve this mission, we established and are currently disseminating and promoting the LANDCROS as our new concept. With roughly 26,000 employees around the world, the consolidated sales revenue for Hitachi Construction Machinery was 1,405.9 billion yen for fiscal year 2023 (ended March 2024) with an overseas sales revenue ratio of 84%. For more details, please see the company's website.

Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.