“This can be a considerably much less carbon-intensive methodology than the conventionally used blast furnace (BF) course of,” Anglo American mentioned.
Anglo American, which produces iron ore concentrates and fines at its operations in Brazil and South Africa, has a goal to realize carbon neutrality throughout its operations by 2040.
Iron ore is important within the manufacturing of metal. The method entails including coking coal to iron ore to make the alloy, which makes the steelmaking sector one of many world’s heaviest polluters, answerable for as much as 9% of world greenhouse emissions.
“Whereas metal is a vital constructing block of our trendy lives, and itself a critically wanted materials for the power transition, the metal business is a big producer of carbon dioxide,” chief govt of Anglo American’s advertising enterprise Peter Whitcutt mentioned within the assertion.
The European metal business has been growing new steelmaking applied sciences to scale back its carbon footprint, with Salzgitter working to supply metal as resource-efficiently as attainable beneath its SALCOS (Salzgitter Low CO2 Steelmaking) venture. The initiative is concentrating on a swap from the usage of BF based mostly on coal to wholly DR steelmaking.
Expertise over targets
Moderately than set laborious targets to scale back so-called Scope 3 emissions, those generated by prospects, main iron ore producers together with Rio Tinto (ASX, LON, NYSE: RIO) and BHP (ASX, LON, NYSE: BHP) have dedicated to working with the metal sector to assist develop new applied sciences as an alternative.
Rio is already working with and POSCO (NYSE: PKX), South Korea’s largest metal producer to discover a variety of applied sciences for decarbonization throughout the worth chain from iron ore mining to steelmaking.
The corporate has additionally teamed up in February with two European firms to explore production of low-emissions hot briquetted iron (HBI) in Canada.
The 2 initiatives construct on Rio’s determination, unveiled in December, to invest $10 million in low-carbon steelmaking projects over the subsequent two years, as a part of its partnership with China Baowu Metal Group, the nation’s largest metal producer.
Anglo American produced 15.7 million tonnes of iron ore within the April-June quarter, up 6% in comparison with the identical interval final yr. The corporate expects to produce between 64.5 million tonnes and 66.5 million tonnes this yr.