China’s steel industry holds significant potential for decarbonization, presenting lucrative opportunities for multinational mining corporations and furthering the global green transition, according to industry experts.
China, one of the world’s major producers and consumers of steel, is actively investigating approaches to reduce carbon emissions throughout its steel value chain. These strategies encompass enhancing energy efficiency and augmenting the utilization of renewable energy sources.
The participation of multinational mining corporations like Rio Tinto, BHP, and Vale is pivotal in aiding China’s shift towards a low-carbon steel sector due to the heavy dependence of Chinese steel mills on foreign suppliers for its iron ore requirements.
Recent agreements have been signed between mining giants and Chinese steelmakers, aiming to advance decarbonization projects such as pilot electric smelters, carbon capture and utilization technology, and low-carbon iron production.
On June 12, Rio Tinto and China Baowu (Baowu), the world’s biggest steelmaker, signed a Memorandum of Understanding (MoU) to explore a range of industry leading new projects in China and Australia to help decarbonise the steel value chain. The areas of collaboration include a pilot-scale electric melter using DRI; optimising pelletisation technology for Australian ores; development of China Baowu’s HyCROF technology, and a study to assess opportunities for producing low-carbon iron in Western Australia.
On June 14, Fortescue, one of the world’s largest and lowest cost iron ore miners, announced an MoU with Baowu to jointly work on reducing emissions associated with iron and steel making. Through this collaboration, efforts will be made to investigate iron production technologies with reduced emissions at one of China Baowu’s facilities in China utilizing Fortescue iron ore and green hydrogen.
Additionally, research and development activities will focus on iron ore beneficiation, along with opportunities for collaboration in the realm of renewable energy and green hydrogen.
On a separate note unrelated to steelmaking, Anglo American announced on June 15 its collaboration with Jiangxi Copper Company, one of China’s largest copper producers, to provide greater assurance on the way copper is mined, processed, and brought to market.
The primary objective is to develop “a more sustainable and customer-centric value chain – one that meets consumer-driven demand for copper with demonstrably strong provenance credentials.”
Sources: China Daily, Rio Tinto (Businesswire), Fortescue, Anglo American