The alliance will see Anglo American supplying iron ore from its Kumba mines in South Africa and the Minas-Rio mine in Brazil to H2 Green Steel, a Swedish hydrogen and steel company.
Vargas-supported H2 Green Steel will use iron ore as the raw material for the direct reduced iron (DRI) production process at its plant in Boden, northern Sweden.
The DRI steel production method is said to be notably less carbon intensive in comparison with the conventional methods.
The process can be mostly CO₂-free when green hydrogen is used as a reducing agent.
Anglo American marketing business CEO Peter Whitcutt said: “Our work with H2 Green Steel will focus on exploring ways for premium, responsibly produced iron ore from our operations to be used as feedstock in the Boden plant’s low-carbon production process, paving the way to a cleaner, greener way to produce steel – one of the backbone materials for the rollout of energy transition infrastructure and for ongoing global socio-economic development.”
H2 Green Steel chief procurement officer Luisa Orre said: “Our purpose is to decarbonise hard-to-abate sectors, and this is only possible with strong partnerships along the value chain with a true commitment to reducing scope 1, 2 and 3 emissions.
“We are impressed by Anglo American’s efforts to bring high-quality iron ore products to customers which focus on low carbon iron and steelmaking, and we look forward to continuing working with them, not only for our first green hydrogen integrated steel plant in Sweden but for other future locations globally.”