Fortescue, the world’s fourth-largest supplier of iron ore, has announced a partnership with a subsidiary of China Baowu Steel Group, the world’s largest steel producer, to address the challenges of decarbonizing the global steel industry.
The collaboration was formalized earlier this week through a memorandum of understanding, as confirmed by Fortescue on its official WeChat account on Wednesday reports Mining.com.
“We are committed to building a green iron supply chain,” the company statement said, quoting Fortescue COO Shelley Robertson.
“The partnership with China Baowu will help further accelerate the development of green iron technology and ensure that we will be able to meet growing demand for green iron in and outside China.”
Fortescue’s green iron project at Christmas Creek, Western Australia, is expected to produce over 1,500 metric tons of green iron annually, starting in 2025. The company plans to make all its iron ore products green by 2030, using green hydrogen and electric smelting technology to produce high-purity sponge iron, report says.
Fortescue CEO Dino Otranto said last October that Australia risks losing its dominant position in the global iron ore market if it does not act swiftly to produce green iron.