Anglo American, Salzgitter tie up on lowering emissions

UK-South African iron ore producer Anglo American will work with German steel producer Salzgitter Flachstahl on decarbonisation of the steel sector, including using iron ore pellets and lump ores.

"The two companies intend to conduct research into feed materials, including iron ore pellets and lump iron ores, suitable for use in direct reduction (DR) steel making based on natural gas and hydrogen, a significantly less carbon-intensive production method than the conventionally used blast furnace (BF) process," Anglo American said.

Anglo American aims to achieve carbon neutrality by 2040.

"While steel is a critical building block of our modern lives, and itself a critically needed material for the energy transition, the steel industry is a significant producer of carbon dioxide," said the chief executive of Anglo American's marketing business Peter Whitcutt.

"That's why we are committed to collaborating with Salzgitter Flachstahl to develop strategies that capitalise on the premium quality properties of our products to help drive emissions reduction across the entire steel making sector," he added.

Salzgitter is working to produce steel through lower carbon emissions and its project targets a switch from the use of BF based on coal to DR steel production.

Anglo American, which produces iron ore concentrates and fines at its operations in Brazil and South America, produced 15.7mn t of ore in the April-June quarter, up 6pc on a year earlier. Its production target this year is 64.5mn-66.5 mn t.

By Deepali Sharma