Rio and POSCO join forces on low-carbon options

The partnership will explore a range of technologies for decarbonisation across the entire steel value chain from iron-ore mining to steelmaking, including integrating Rio Tinto’s iron-ore processing technology and POSCO’s steelmaking technology.

Rio said on Thursday that the MoU with POSCO underlined the company’s commitment to working in partnerships with customers on steel decarbonisation pathways and to invest in technologies that could deliver reductions in steelmaking carbon intensity of at least 30% from 2030 or with potential to deliver carbon neutral steelmaking pathways by 2050.

Both Rio and POSCO share the ambition to reach net zero carbon emissions by 2050.

“This partnership with POSCO, a valued and long-standing customer, demonstrates our combined commitment to working together to identify ways to reduce emissions across the steelmaking process,” Rio chief commercial officer Alf Barrios said.

“The agreement also complements Rio‘s partnerships with other customers as the industry focusses on developing technologies that support the transition to a low-carbon economy.”

POSCO’s head of steel business unit, Hag-Dong Kim, said that tackling climate change was a critical item in achieving sustainable development for a better future.

“On the journey to achieving carbon neutrality with Rio Tinto, we can play an important role of finding a way to build a low-carbon steel industry,” he added.