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15 June 2026

Daily Newsletter

15 June 2026

Rio Tinto, China Baowu conclude shaft furnace trials

The trials used a hydrogen-based shaft furnace to produce DRI from pellets containing one-third Pilbara Blend ore.

Srivani Venna June 15 2026

Rio Tinto and China Baowu and have concluded pelletisation and shaft furnace trials using the former’s Pilbara Blend iron ore.

These trials, conducted in China, are part of a broader collaboration aimed at reducing emissions in steelmaking and involved industrial-scale testing at Baowu’s Baoshan Iron & Steel Zhanjiang Steel Operations.

The experiments used a hydrogen-based shaft furnace to produce direct reduced iron (DRI) from pellets containing one-third Pilbara Blend ore.

This DRI was then transformed into steel using a basic oxygen furnace and tested in a small-scale 500kg electric smelting furnace.

These processes demonstrate the potential of mid-grade ores from Western Australia's Pilbara region as feedstock for hydrogen-based direct reduction, suggesting a future path towards low-carbon steelmaking when combined with electric smelting technology.

Expanding feedstock and fuel options is an ongoing priority for the industry as current direct reduction methods typically employ high-grade iron ore.

The developments fulfil a key aspect of a memorandum of understanding (MoU) signed in 2023 between China Baowu and Rio Tinto aimed at exploring decarbonisation technologies for the steel value chain.

Baowu Low Carbon Centre executive deputy director and Baowu Central Research Institute deputy director Mao Xiaoming said: “These trials represent pragmatic actions implemented under the Climate Partnership MoU between China Baowu and Rio Tinto. The successful industrial-scale trials help both parties advance understanding in lower-emissions iron and steel-making technologies.

“More importantly, they reflect the strong technical collaboration between Baowu and Rio Tinto, combining our respective expertise across iron ore, process innovation and industrial application.”

The companies have collaborated for more than 50 years on research and technology innovation within the steel-making sector.

The joint initiatives began in 2020, focusing on multiple phases of decarbonisation projects.

According to GlobalData’s analysis, global steel demand is expected to surge by 30% through 2050, making advancements in low-carbon processes and flexible feedstock sourcing, including partnerships like Rio Tinto and Baowu’s, critical to meeting future supply sustainably.

Last month, Rio Tinto dispatched its eight-billionth tonne of iron ore from the Pilbara region, with the shipment heading to its partner Nippon Steel.

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