Steel Products
H2 Green Steel Inks Pacts with Rio Tinto, Vale for Iron Ore Pellets
Written by Ethan Bernard
August 9, 2023
H2 Green Steel is partnering with global mining and metals company Rio Tinto and Brazilian miner Vale for the supply of direct-reduction iron (DRI) ore pellets for the company’s green steel production in Sweden.
The sustainable Swedish steelmaker reported Wednesday that it has signed a multi-year supply agreement for DRI pellets from Rio Tinto’s Iron Ore Co. of Canada (IOC).
This will account for a significant part of the iron ore supply to H2 Green Steel’s flagship plant in Boden, Sweden, the company said.
Additionally, the companies have signed an agreement where Rio Tinto will buy and on-sell a part of the surplus low-carbon hot briquetted iron (HBI) made by H2 Green Steel during the ramp-up of its steelmaking capacity.
“This is a significant milestone for our project in Boden,” Henrik Henriksson, CEO of H2 Green Steel, said in a press release. “Not only by securing a supply of the high-quality iron ore needed for our green steel production, but also because we have a buyer for a portion of the HBI we initially expect to produce.”
In a separate release Wednesday, H2 Green Steel reported a multi-year agreement where Vale will supply the steelmaker with iron ore pellets as input material for its mill in Boden.
“This marks another strategic agreement for H2 Green Steel where Vale, in addition to the supply of iron ore pellets, also brings significant experience and great technical knowledge into the collaboration,” Henriksson said. “We look forward to developing decarbonization paths together with the team at Vale.”
H2 Green Steel said the pellets will be delivered from Tubarão in Brazil to Boden via the Port of Luleå in Sweden.
Ethan Bernard
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Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.
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