Rio Tinto to invest $10 million in low-carbon steel with China’s Baowu

Industry: ,    2020-12-17

Rio Tinto Ltd said on Wednesday it plans to invest $10 million in low-carbon steelmaking projects over the next two years in an effort to fight climate change with China Baowu Steel Group.

The investment will be used to set up a raw material R&D centre, which will initially focus on low-carbon ore preparation processes, the Anglo-Australian miner said in a statement.

Rio Tinto and Baowu, which is expected to become the world’s top steel producer this year, overtaking ArcelorMittal, signed a deal with Tsinghua University in 2019 to develop and implement methods to reduce carbon emissions.

“We have been able to identify research and development projects which have the potential to significantly reduce the carbon emissions associated with exciting processes, as well as developing technologies for the future of steelmaking to support the transition to a low-carbon economy,” Rio Tinto chief executive J-S Jacques said in the statement. Baowu Group last month signed an MoU with BHP Group in November to share technical knowledge on reducing greenhouse gas emissions.

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