Anglo American inks Chinese contract for iron ore shipping

Image: Anglo American

Anglo American has awarded a 10-year charter contract for four LNG-fuelled capesize vessels, marking its first introduction of LNG into its chartered fleet.

The 190,000-deadweight tonne carriers will be designed by Taiwan-based U-Ming Marine Transport and built by Shanghai Waigaoqiao Shipbuilding in China.

The fleet is expected to arrive in 2023 and carry up to five million tonnes of iron ore a year from Anglo American’s Brazilian and South African operations.

Anglo American stated the new fleet would help the company in its move towards carbon neutrality by 2040, with the LNG vessels offering an approximately 35 per cent reduction in carbon dioxide emissions compared with standard marine fuel.

“Anglo American is committed to reducing emissions from its ocean freight operations and to playing a leading role in shaping a more sustainable future for the maritime industry,” Anglo American chief executive of marketing business, Peter Whitcutt said.

“Today’s agreement is aligned with Anglo American’s goal to be carbon neutral across our operations by 2040 – as we work to reduce emissions not only at our production sites but also along our entire value chain…”

The use of LNG eliminates sulphur oxides and significantly reduces nitrogen oxides and particulate matter from vessel exhausts.

The new vessels will also incorporate new technology to eliminate the release of unburnt methane.

They will be bunkered in Singapore to avoid detours in trading routes.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.