POSCO and Rio Tinto, a leading global mining and metals company, have signed a Memorandum of Understanding (MoU) to jointly explore, develop and demonstrate technologies to transition to a low-carbon emission steel value chain.
The partnership will explore a range of technologies for decarbonisation across the entire steel value chain from iron ore mining to steelmaking, including integrating POSCO’s steelmaking technology and Rio Tinto’s iron ore processing technology.
The partnership with Rio Tinto underlines that POSCO’s efforts to decarbonise will play an important role in achieving the country’s recently announced ambition to become carbon-neutral by 2050, which has inspired Korean companies to accelerate decarbonisation activities. Both POSCO and Rio Tinto share the ambition to reach net zero carbon emissions by 2050.
As a leading global mining and metals company, Rio Tinto’s commitment to working in partnerships with customers on steel decarbonisation pathways and to invest in technologies could deliver reductions in steelmaking carbon intensity of at least 30% from 2030 or with potential to deliver carbon neutral steelmaking pathways by 2050.
POSCO’s Head of Steel Business Unit HAG-DONG KIM said: “Tackling climate change is a critical agenda in achieving sustainable development for a better future. On the journey to achieving carbon neutrality with Rio Tinto, we can play an important role of finding a way to build a low-carbon steel industry.”
Rio Tinto’s Chief Commercial Officer, Alf Barrios, said: “This partnership with POSCO, a valued and long-standing customer, demonstrates our combined commitment to working together to identify ways to reduce emissions across the steel-making process. The agreement also complements Rio Tinto‘s partnerships with other customers as the industry focusses on developing technologies that support the transition to a low-carbon economy.”