POSCO to Collaborate with Australia's Hancock on Low-Carbon Steel Raw Material Production

HBI Factory Establishment and Iron Ore Mine Development Feasibility Study Launched
Review of Hydrogen Production Infrastructure Including Hydrogen Facility Investment

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] POSCO is undertaking a feasibility study to promote a low-carbon steel raw material production project in collaboration with Australian resource development company Hancock.

On the 29th (local time), the two companies signed a Heads of Agreement for a business feasibility study of a low-carbon Hot Briquetted Iron (HBI) production project at Hancock's headquarters in Perth, Australia. HBI is a processed product formed into briquette shapes by removing oxygen (reduction) from iron ore.

The two companies plan to conduct a detailed feasibility review in areas including the establishment of an HBI plant, development of Australian iron ore mines, and pilot facility investment for hydrogen production, examining investment economics and risk factors.

POSCO will first jointly develop Hancock's Australian mines to secure iron ore stably and consider establishing a low-carbon HBI manufacturing plant that reduces carbon dioxide emissions by using hydrogen as a reducing agent. In the future, hydrogen used as a reducing agent will also be produced directly by utilizing Australia's excellent renewable energy conditions.

POSCO signed a Memorandum of Understanding (MOU) with Hancock last July regarding HBI production and conducted a preliminary feasibility study. Through this HoA, they plan to carry out a detailed review by the end of this year and then decide on investment.

The two companies have been successfully operating the Roy Hill mine, which they jointly invested in 2010, and recently, POSCO International and Hancock Energy jointly acquired Senex Energy, an Australian natural gas production and development company, planning to develop a strategic partnership sharing a new growth vision.

Lee Joo-tae, Head of POSCO's Purchasing and Investment Division, said, "This is the first project POSCO is promoting for low-carbon steel production since its new start as a steel-specialized business company," adding, "Together with Hancock, which has resource development capabilities, we will review the promotion of low-carbon steel raw material production through this opportunity and lead a new era of steel."

This content was produced with the assistance of AI translation services.