POSCO and Vale, a global iron ore supplier, will expand cooperation to secure low-carbon steel raw materials. On August 1st, the two companies signed a joint research agreement to promote the low-carbon HBI production at the Vale headquarters in Rio de Janeiro, Brazil. Ju-tae Lee, Head of Purchasing and Investment Division of POSCO and Luiz Meriz, Global Director for Sales of Iron Ore and Coal from Vale attended the signing ceremony.
POSCO and Vale decided to conduct joint research in the areas of selection of potential regions, cost and investment cost analysis by the production process, and carbon emission reduction measures in the production process to promote the HBI business. The two companies plan to complete a basic review for the HBI business, including the optimal location of the plant, scale, production method, and economic feasibility by the end of this year.
POSCO signed a Memorandum of Understanding (MOU) for carbon-neutral cooperation with Vale in November last year and has conducted joint research on how to use low-carbon raw materials in the process. Through this agreement, the joint research field for carbon neutrality expanded to the HBI business
At the signing ceremony, Ju-tae Lee, Head of Purchasing and Investment Division of m POSCO said, “We have expanded the field of cooperation with Vale, a global iron ore supplier active in carbon emission reduction. We will seek ways to secure stable HBI with Vale, which has capabilities as a raw material supplier, and take the lead in realizing carbon neutrality.”
Luiz Meriz, Global Director for Sales of Iron Ore and Coal from Vale said, “With this agreement, both companies have come one step closer to achieving the carbon neutrality goal. We look forward to creating synergy and strengthening the cooperative relationship between the two companies through joint research on the HBI business.”
POSCO Group is establishing an eco-friendly production system to achieve the 2050 carbon neutrality goal. Also, it is strengthening the cooperative relationship with global raw material suppliers to solidify its global competitiveness through a phased conversion to a carbon-neutral production system and the establishment of an eco-friendly infrastructure.
The two companies have been trading iron ore for more than 40 years since 1976, and plan to strengthen cooperation in the field of raw material purchase and investment in the future.