Diversified miner Anglo American has joined forces with Japan-based Nippon Steel to boost the development of lower-carbon solutions for the steelmaking industry.

According to the signed memorandum of understanding (MoU), the firms will explore ways to improve premium lump ore, which will be produced by Anglo American’s mines in Brazil and South Africa, reported Mining.com.

This would result in reduced emissions in the traditional blast furnace (BF) steelmaking process.

Anglo American marketing business CEO Peter Whitcutt said: “This agreement is an important component of Anglo American’s approach to collaborating with our customers and helping to shape a greener future for the backbone of global infrastructure – steel.

“By working together, we can drive towards system-level decarbonisation and pave the way for sustainable steelmaking, underpinning the steel industry’s full potential as an enabler of society’s wider economic prosperity and social development.”

Furthermore, the project will assess the use of Anglo’s iron-ore in the more carbon-efficient direct reduction iron (DRI) steelmaking process.

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By GlobalData

Anglo said that the DRI would lead to significantly reduced emissions when compared with more prevalent steelmaking routes of blast furnaces, as well as basic oxygen furnaces.

The mining firm, which supplies coking coal and iron ore to global steel customers, targets a 50% decrease in Scope 3 emissions by 2040.

Whitcutt added: “Our product portfolio focuses on future-enabling metals and minerals that are critical to the transition to a lower carbon world.

“We look forward to collaborating on this important work with Nippon Steel, with whom we have a relationship that spans more than five decades, combining our expertise for more efficient and less carbon-intensive production processes.”

By 2030, Nippon Steel seeks to reduce CO₂ emissions by 30%, with the aim of becoming carbon neutral by 2050.