BHP, Rio partner with BlueScope for steel decarbonisation efforts

The news: Mining giants BHP and Rio Tinto will partner with steelmaker BlueScope on efforts to accelerate the decarbonisation of steelmaking.

The numbers: Australia’s two biggest iron ore producers and its top steelmaker have agreed to jointly assess developing the country’s first ironmaking electric smelting furnace (ESF) pilot plant. The pre-feasibility study work program is expected to conclude at year-end. If approved, the pilot facility could be commissioned as early as 2027.

The context: The three companies will assess several locations around Australia for the proposed pilot facility, with factors like supporting infrastructure, available workforce, access to target industry and supply chain partners being considered.

BHP last year announced it was teaming up with engineering firm Hatch to design an ESF plant, which is a new type of furnace capable of producing steel from iron ore using renewable electricity and hydrogen, instead of coking coal, a key source of carbon emissions. BHP has previously estimated that reductions of more than 80% in carbon emission intensity are possible under this method.