Posted on 31 Mar 2022
POSCO has joined hands with Hancock, an Australian resources development company, to promote production of low-carbon steel raw materials.
POSCO announced on March 29 that it signed a heads of agreement (HoA) with Hancock for a feasibility study on a low-carbon hot briquetted iron (HBI) production project at its partner's office in Perth, Australia. The signing ceremony was attended by Lee Joo-tae, head of POSCO’s Purchasing and Investment Division, and Garry Korte, CEO of Hancock.
HBI is a relatively new product that is created by reducing the iron ore with natural gas. It can be used as a pre-material in blast furnaces or electric arc furnaces.
Through the agreement, the two companies plan to conduct a detailed feasibility study on the establishment of a new HBI plant, the development of an iron ore mine in Australia, and investment in pilot facilities for hydrogen production.
The two companies are considering developing an Australian mine owned by Hancock to secure a stable supply of high-quality iron ores and establishing a new low-carbon HBI manufacturing plant that reduces carbon dioxide emissions by using hydrogen as a reducing agent. Furthermore, they are also planning to directly produce hydrogen used as a reducing agent by making good use of Australia’s excellent renewable energy conditions.
In July 2021, POSCO signed an MOU with Hancock for HBI production and has been conducting a preliminary feasibility study. Through this HoA, the company plans to make a detailed review by the end of 2022 before making an investment decision.
POSCO Group and Hancock jointly invested in Roy Hill Mine in Australia in 2010 and have since been operating it. Recently, POSCO International and Hancock Energy also acquired Senex Energy, an Australian natural gas producer and developer. The two companies plan to develop a strategic partnership in the fields of low-carbon raw materials, energy, and secondary battery material businesses (nickel and lithium).
Source:Business Korea
