The world’s biggest steelmaker, China Baowu, and the world’s largest iron ore producer, Rio Tinto (ASX:RIO), have signed a Memorandum of Understanding (MoU) to explore multiple new industry-leading projects.
The projects include the research, build and demonstration of a pilot-scale electric melter at one of Baowu’s steel mills in China. This will enable the production of low-carbon steel making using direct reduced iron produced from low and medium grade ores.
Other projects include optimising pelletisation technology for Australian ores as a feedstock for low-carbon shaft furnace-based direct reduction and expanding the development of China Baowu’s HyCROF technology which largely mitigates CO2 emissions from the blast furnace process.
Both companies will also jointly study opportunities for producing low-carbon iron in WA.
These projects will help decarbonise the steel value chain in both Australia and China.
Rio Tinto chief commercial officer Alf Barrios said the MoU will help one of the biggest challenges in the steel value chain.
“Rio Tinto and China Baowu are united in a commitment to accelerating the delivery of low-carbon solutions for the entire steel value chain,” he said.
“This MoU aims to address one of the biggest challenges faced by the industry — developing a low-carbon pathway for low-to-medium grade iron ores, which account for the vast majority of global iron ore supply.
“China’s commitment to curbing emissions and promoting high-quality green development is strongly aligned with our own position where climate change and the low-carbon transition are at the heart of our strategy.”
The innovative projects come as a result of Rio Tinto and China Baowu’s partnership which spans 50 years.
Rio Tinto chief executive of iron ore Simon Trott said the company looks forward to progressing the study of low-carbon iron making in WA.
“Our relationship with China Baowu in Western Australia has been a proud and successful one, extending back more than 40 years,” he said.
“We look forward to progressing this study into the potential of low-carbon iron making in Western Australia as we work to ensure a positive future for Pilbara ores in a green steel world.”
This MoU follows the recent $2b western range joint venture between Rio and Baowu.
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