(Adds detail, background, shares)
April 4 (Reuters) - Anglo American said on
Tuesday it had signed a memorandum of understanding with Swedish
hydrogen and steel producer H2 Green Steel to work on advancing
low-carbon steelmaking processes.
The miner said the agreement includes studying and trialling
the use of iron ore products from its Kumba mines in South
Africa and Minas-Rio mine in Brazil as feedstock for H2's direct
reduced iron (DRI) production process at its Boden plant in
Sweden.
DRI steel production is estimated to be significantly less
carbon intensive than traditional blast furnace and basic oxygen
furnace integrated processes.
Anglo American has agreements with a number of steelmakers
in Europe and Asia to research efficient feed materials suited
to use in DRI steelmaking, including iron ore pellets and lump
iron ore.
H2 Green Steel, which was launched in 2021, is currently
developing its DRI plant in Boden, which the company said would
be powered by hydrogen plants running on renewable electricity.
Anglo American's shares were up 0.4% by 0715 GMT.
(Reporting by Muhammed Husain in Bengaluru; Editing by
Subhranshu Sahu, Kirsten Donovan)
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