BHP is the world’s biggest listed miner and biggest coking coal producer. Combined with iron ore, also mined by BHP, coking coal is used to make steel, producing millions of tonnes of CO2.

The investment is part of BHP’s $400 million fund for reducing emissions, as investor pressure builds on mining companies to find more sustainable ways to operate.

Under the partnership with JFE Steel, owned by JFE Holdings, studies will be conducted on how the properties of raw materials from Australia can help lower emissions and increase efficiencies from the blast furnace.

“Throughout the collaboration the two companies will also share knowledge on reducing carbon emissions across the steel value chain,” a statement from BHP said.

The miner last year inked a $35 million deal with China Baowu to address climate change issues and awarded a tender to Eastern Pacific Shipping to charter five bulk iron ore carriers powered by liquefied natural gas (LNG), a cleaner alternative to normal ship fuel.

BHP has pledged to cut carbon emission by 30% by 2030 while JFE Steel, Japan’s second-biggest steelmaker, aims to lower its own emissions by more than 20% by 2030.