Rio Tinto has signed a Memorandum of Understanding (MoU) with Salzgitter Group to examine technical, logistical and grade-specific issues for low-carbon supply chains and green steel production processes, with Rio Tinto’s high-quality Canadian and Australian iron ore products to be used in the SALCOS green steel program.
Under the MoU, technical issues to be exploreed include optimising pellet quality with respect to direct reduction with hydrogen, the use of lump ore and other iron carriers when reducing by hydrogen, and the production of a sinter for deployment in a direct reduction plant when reducing by hydrogen. Furthermore, the carbon emissions in the entire supply chain and opportunities for their registration and certification will be examined.
Both companies will also actively engage in this sphere as with low-carbon steel production and the requisite raw materials they can lay the foundation for achieving their sustainability targets and those of their customers.
Rio Tinto produces iron ore in Canada and Australia. The Iron Ore Company of Canada (IOC) produces direct reduction pellets and blast furnace pellets, as well as concentrate in Canada. Rio Tinto Iron Ore produces lump and fine ore in the Pilbara region of Australia.
The MoU will see these products used in the SALCOS (SAlzgitter Low CO2Steelmaking program), which aims to achieve virtually carbon-free steel production.
Rio Tinto Chief Commercial Officer, Alf Barrios, said, “We welcome the chance to work with Salzgitter on ways to accelerate steelmaking, in keeping with our commitment to reduce emissions across the steel value chain. Salzgitter has one of the world’s most advanced green steelmaking projects.
“Rio Tinto is excited at the opportunity of supplying our product and combining our technical expertise with that of Salzgitter to help advance the SALCOS program.”
Salzgitter Flachstahl GmbH Chairman of the Management Board, Ulrich Grethe, said, “With this alliance, we want to combine the knowledge of both companies to make further progress with low-carbon steel production.
“In this context, the Salzgitter Group is relying on strong partners as set out in our ‘Salzgitter AG 2030’ Group strategy, line with its motto of ‘Partnering for Circular Solutions’.”
