Overseas
players grasp opportunities from dual goals, enhance local ties, R&D
Eyeing the massive steel
decarbonization potential in China, global mining companies are stepping up
efforts and investment for low-carbon solutions along the steel value chain in
the country, and are establishing cooperation with more local partners,
analysts said.
"Overseas miners are
motivated to collaborate with Chinese mills to help develop technologies for
carbon reduction in their production, as more than 70 percent of the total iron
ore demand is met by overseas suppliers," said Zhu Yi, a senior analyst
with metals and mining at Bloomberg Intelligence, a market monitor.
"Enhanced cooperation
between mills and overseas suppliers will further boost the carbon reduction
progress from the raw material side and through to the production
process," Zhu said.
Her comment came after global
metals and mining giant Rio Tinto Group announced on Sept 22 that it had inked
a memorandum of understanding with Shougang Group, a major steel producer, to
jointly promote the research and development, design and implementation of
low-carbon solutions for the steel industry.
The MoU's focus areas include
low-carbon sintering technology, blast furnace (BF) and basic oxygen furnace
optimization, and carbon capture and utilization, it said.
The partnership with Shougang
underlines Rio Tinto's strategic commitment to partner with customers on steel
decarbonization pathways and to invest in technologies that can deliver
reductions in steelmaking carbon intensity, said the company in a release.
Steel is a vital material for
economic growth and low-carbon infrastructure, and Rio Tinto wants to play a
role as an industry partner to support the decarbonization of steel, said Rio
Tinto Chief Commercial Officer Alf Barrios.
Rio Tinto is not alone.
Brazilian mining giant Vale SA said that it is already cooperating with some 30
steel companies to pursue iron-making solutions focused on fewer emissions,
including many leading Chinese steel companies.
The latest MoU signed in
China was with Fujian Sansteel Group Co Ltd and Xiamen ITG Group Corp Ltd in
June. The companies will jointly explore and study iron ore solutions, develop
customized iron ore products for Sansteel Group, and discuss the possibility of
cooperating on concentration businesses.
BHP, an Australian mining
company, signed a three-year cooperation agreement in November with Hegang
Group Co Ltd and Beijing University of Science and Technology to jointly carry
out R&D on technologies related to low-carbon steel production.
This is after BHP's
announcement of a three-year $15 million investment plan to jointly study and
explore greenhouse gas emission reduction technologies with Hegang Group in
March 2021.