Brazil's Vale, Korea's Posco look to develop decarbonization solutions

Brazilian mining giant Vale and one of its main clients, South Korea's largest steelmaker Posco, signed an MOU to develop decarbonization solutions in ironmaking.  

"The steel and mining industries are already being transformed to develop low carbon solutions, and we are happy to be with Posco on this journey. The decarbonization pathway will be critical to set how the industry will meet the Paris Agreement targets and deliver an important legacy to society and our planet," said Marcello Spinelli, Vale’s VP of iron ore, in a release.

The MOU includes looking at using high-grade iron ore products such as pellets, fines and briquettes as a potential solution for reducing fossil fuel consumption. 

"Both companies have the goal of achieving carbon net-zero by 2050, an important social responsibility that we must fulfill as members of society. Instead of trying it alone, if we work together, we will create more synergies," said Hagdong Kim, Posco’s head of the steel business unit.

Mining firms and steelmakers are watched closely by investors regarding their initiatives to reduce greenhouse emissions.