Vale, Jiangsu Shagang to develop low-carbon steelmaking

Brazilian miner Vale SA and Chinese steelmaker Jiangsu Shagang Group Co. Ltd have agreed to develop a way of making steel that leaves a smaller carbon footprint, Vale says.

The miner announced in writing that the agreement was signed on Monday.

Vale and Jiangsu Shagang will cooperate in studying the economic feasibility of using high-grade iron ore for steelmaking, the announcement says.

It says Jiangsu Shagang and Vale subsidiary Tecnored Desenvolvimento Tecnológico SA will develop low-carbon pig iron plants fired by fuels that do less harm to the environment than conventional fuels.

The endeavour, if successful, will help Vale fulfil its commitments to reducing its emissions by 15 percent by 2035 and becoming carbon neutral by 2050, according to the company announcement.