POSCO Collaborates with Iron Ore Supplier Vale on Low-Carbon Steel Materials

Signing of Joint Research Agreement for Promoting HBI Production

On the 1st (local time), Joo-Tae Lee, Head of Purchasing and Investment Division at POSCO (left), signed a joint research agreement to promote low-carbon HBI production with Luiz Meriz, Head of Global Iron Ore Sales Division at Vale headquarters located in Rio de Janeiro, Brazil.

[Asia Economy Reporter Oh Hyung-gil] POSCO is expanding cooperation with Vale, a global iron ore supplier, to secure low-carbon steel raw materials.

On the 1st (local time), POSCO signed a joint research memorandum of understanding (MOU) with Vale at Vale's headquarters in Rio de Janeiro, Brazil, to promote the production of low-carbon direct reduced iron products (HBI).

The two companies agreed to conduct joint research for the HBI business promotion, including ▲selection of candidate sites ▲analysis of costs and investment for each production process ▲carbon emission reduction measures during production. They plan to complete a basic review of the HBI business by the end of the year, covering optimal plant location, scale, production methods, and economic feasibility.

Last November, the two companies signed an MOU for carbon neutrality cooperation and have been conducting joint research on utilizing low-carbon raw materials in processes. Through this agreement, the scope of joint research for carbon neutrality has been expanded to include the HBI business.

The POSCO Group is strengthening cooperation with global raw material suppliers by gradually transitioning to a carbon-neutral production system, building eco-friendly infrastructure, and aiming to achieve the '2050 Carbon Neutrality' goal.

Lee Joo-tae, Head of POSCO's Purchasing and Investment Division, said, "We have expanded our cooperation with Vale, a global iron ore supplier actively reducing carbon emissions, to the HBI field. We will seek stable HBI supply measures together with Vale, which has capabilities as a raw material supplier, and take the lead in realizing carbon neutrality."

Meanwhile, a ceremony commemorating the cumulative production of 100 million tons by Cobrasco, an iron ore pellet production joint venture established and operated by POSCO and Vale since 1996, was held at the local plant in Vitoria, Brazil.

Lee said, "I thank the executives and employees who have worked hard to ensure the stable supply of high-quality iron ore pellets. I pray for safe operations and ask that Cobrasco continue to play a significant role in POSCO's achievement of carbon neutrality in the future."

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