Rio tinto and baosteel signed a steel supply chain emissions reduction agreement
Rio Tinto, the world's largest iron ore producer, reached a preliminary agreement with two Chinese partners on Sept. 25 to jointly develop new ways to reduce emissions in the steelmaking supply chain.
Rio tinto has teamed up with baowu iron & steel group, China's largest steelmaker, and tsinghua university to address the steel industry's carbon footprint and improve its environmental performance, the company's chief executive said in a statement.
"Our steel products play an important role in the transition to a low-carbon future, and we are committed to working with our customers and others to find the most sustainable way to produce, process and sell."Jean-sebastien Jacques, Rio's chief executive, told a steel conference in Qingdao.
According to Rio's announcement, the working group established under the agreement will develop a research and development plan covering technology, process, equipment, logistics and industry coordination.
In recent years, the world's mining companies have come under increasing pressure not only to be responsible for their own carbon emissions, but also those of their customers, particularly those of producers of carbon-intensive materials used in the steelmaking process, such as metallurgical coal.
In July, Andrew Mackenzie, BHP's chief executive, said the company, the world's first miner to commit to tackling pollution from the use of its consumer products, would invest $400m (2.85bn yuan) over the next five years to reduce carbon emissions.
"Baowu group is looking forward to working with tsinghua university to explore innovative low-carbon metallurgical methods and establish a low-carbon industrial value chain."Baowu group chairman said.
According to the 2017 data estimates by the world iron and steel association, the steel industry chain accounts for 7-9% of global carbon emissions.