Vale, Sansteel, ITG sign steelmaking decarbonization MoU

Brazilian mining giant Vale, South China's Fujian Sansteel (Group) Co., Ltd. (Sansteel Group) and Xiamen ITG Group Corp., Ltd (ITG) have signed a Memorandum of Understanding (MoU) to pursue ironmaking solutions focused on reducing carbon emissions, according to a Vale press release on June 30.

Under the agreement, Vale, Sansteel Group and ITG will jointly explore and study iron ore solutions for Sansteel and develop customized iron ore products for Sansteel, the MoU says. The three are discussing the possibility of cooperating on iron ore concentration business.

Sansteel Group, headquartered in Sanming City, is a leading steel enterprise in Fujian province and has steel production bases in Sanming, Quanzhou, Luoyuan, and Zhangzhou. Currently, the group has a total steel capacity of around 12 million tonnes/year and it produced 11.4 million tonnes of crude steel last year, according to the company.

ITG, a state-owned enterprise providing supply chain management and financial services, also in Fujian province, owns Xiamen ITG Mining Resources Co., Ltd, a metallurgical supply chain firm focusing on iron ore solutions, Mysteel Global understands.

Earlier on June 27, Vale and Beijing Jianlong Heavy Industry Group Co., Ltd. (Jianlong Group) had also signed a MoU to jointly study the reduction of carbon emissions during the ironmaking process.

The two parties intend to study the possibility of using the Tecnored process developed by Brazilian firm Tecnored Desenvolvimento Tecnologico S.A and biocarbon technology in the plants of Jianlong Group. Vale is a shareholder in Tecnored Desenvolvimento Tecnologico.

The two are also discussing partnering in HBI production outside China, exploring cooperation on ore concentration projects, and studying how Vale's high Fe grade iron ore can be used in Jianlong Group's new ironmaking technologies, Mysteel Global noted.

Vale said in the statement that the latest initiatives it is making to cooperate with China's steelmakers will contribute to Vale's commitment to reduce 15% of net Scope 3 emissions by 2035. Additionally, Vale seeks to reduce its absolute Scope 1 and 2 emissions by 33% by 2030 and achieve net zero by 2050, in line with the Paris Agreement, according to the Vale.

Written by Victoria Zou, zyongjia@mysteel.com

Note: This article has been published in accordance with an article exchange agreement between Mysteel Global and SteelMint.