Rio Tinto Group, one of the world’s leading metal producers, has reportedly announced that it has committed to invest USD 10 million with Baowu Steel Group over the next two years to advance low-carbon steel-producing projects and research.
China Baowu Steel Group is one of the leading largest steel producers in China. The investment is the next step in strengthening the collaboration formed between Tsinghua University, China Baowu, and Rio Tinto in 2019, to develop and implement new procedures to decrease carbon emissions and enhance environmental performance across the steel value chain.
Sources cite that Rio Tinto’s funding will be used to establish a low carbon raw materials preparation research and development center, which will primarily prioritize the development of low carbon ore preparation processes.
This will include developing two ore preparation pilot plants, one to explore microwave technology and the other will use biomass. The investment will also progress technologies that will be pivotal in decreasing emissions from China’s prevalent steel and Iron making process, aiding both long term as well as short term decarbonization goals of the steel industry. As one of the leading steel producers in the world, China Baowu’s leadership in progressing low-carbon steel solutions is a pivotal pillar in aiding the nation’s target to become carbon neutral by 2060.
Speaking on which, Chen Derong, Chairman of China Baowu said that to deal with climate change across the globe and attain green transformation via cooperation has become the common practices and consensus of the global steel value chain. It needs collective action of the steel enterprises, and upstream as well as downstream players, he states.
Mr. Derong said the company appreciates Rio Tinto’s commitment to advancing a lower-carbon future, and is looking forward to strengthening collaboration with Rio Tinto in contributing joint efforts.”