Rio Tinto has signed a memorandum of understanding (MOU) with POSCO to explore and develop low-carbon emission technologies for iron ore mining through to steelmaking.
The partnership will integrate Rio Tinto’s iron ore processing technology with POSCO’s steelmaking technology in an effort to decarbonise the value chain.
According to Rio Tinto, the partnership represents its focus on creating steel decarbonisation pathways with customers and to also reduce its steelmaking carbon intensity by at least 30 per cent from 2030 by investing in new technologies.
The miner stated investment in low-carbon emission technologies has the potential to help it reach net zero emissions by 2050.
According to Rio Tinto chief commercial officer Alf Barrios, the partnership demonstrates both companies’ commitment to reduce carbon emissions.
“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,” Barrios said.
“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.”
POSCO head of steel business unit Hag-Dong Kim said the partnership will be a key factor in creating a low-carbon steel industry.
“Tackling climate change is a critical item 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,” Kim said.
POSCO is a leading steelmaker company and the largest in South Korea.
Rio Tinto has targeted a 30 per cent reduction to its carbon intensity and a 15 per cent reduction to its absolute emissions by 2030.
It has also established a $1 million fund to invest in climate-related projects.