Tag Archives: Anglo American

Anglo’s digital vision for Quellaveco takes shape with Epiroc autonomous drill rig arrivals

Anglo American’s automation plans for its Quellaveco mine in Peru are starting to take shape, with its first automated trucks having started up in “pre-mining” mode last year and now automation-ready drills on site ahead of first ore production later this year.

The company’s most digital and autonomous mine yet, Quellaveco is expected to produce 300,000 t/y of copper over the first 10 years of the mine from an orebody that currently has around 1,300 Mt of reserves.

In the company’s December quarter production results today, it said construction of the project was progressing to plan, with first ore mined in October and first copper concentrate production expected in the middle of 2022.

In the first half of 2021, the operation started up four of a planned fleet of 27 autonomous Cat 794AC haul trucks as one element in a range of technologies that will help to make Quellaveco Anglo American’s first 100% digital mine.

Anglo American plans to deploy a fleet of 27 autonomous Cat 794AC haul trucks at Quellaveco

Now, the company has drill rigs on site that, by the end of this year, should be fully integrated into its in-country remote operations centre. The rigs – six fully autonomous Epiroc Pit Viper 351s and three tele-remote SmartRoc D65s – will eventually be overseen from this remote operations centre.

IM put some questions to Tito Cacho, General Manager of Quellaveco, to find out more about these rigs and what led to the planned automation leap at the mine.

IM: How did your experience with Epiroc on developing and implementing a new tele-remote drilling project at Los Bronces influence the decision to implement a fully autonomous drill fleet at Quellaveco? Did many of the people that implemented the Los Bronces project come over to Quellaveco?

TC: One of the objectives of Anglo American has been building a modern and fully digital mine at Quellaveco, incorporating the latest technologies to make this an even safer, productive and sustainable mining operation. A team of Anglo American engineers that were involved in the Los Bronces implementation have assisted in some aspects of the project in Quellaveco, bringing the benefits from our experience gained in Chile.

IM: What qualities does Quellaveco as an asset have in terms of applying autonomous drilling (aside from the fact it is a ‘greenfield mine’ you can design around automation)?

TC: We believe that Quellaveco will set a new standard. Through our experience with automation, the industry is driving towards safer and more reliable operations. This can make a significant difference not only to the mining operations itself but for our stakeholders who increasingly demand more sustainable operations.

Our team has been developing processes and procedures to build autonomy into the operational culture from day one. We are developing multifunctional skills in our operators and technicians, so that they learn about new roles and equipment operation, giving us the flexibility for people to work in any part of the process. The enthusiasm and willingness to learn and work with this new technology that we have seen in all the groups in Quellaveco has been an incredible asset.

IM: What other benefits stood out to you when evaluating fully autonomous drilling at the asset (safety, productivity, etc)?

TC: Safety is the primary benefit, and, as you know, is our most important value at Anglo American. We can distance an operator from areas of risk and put them in an environment that is safer, with less exposure to dust, noise and vibration. The operator becomes an autonomous drilling controller and is more comfortable and in a better ergonomic position. In addition, we have been able to improve the use, efficiency and precision of the equipment, and the ability to control multiple machines per person are notable benefits over manual operation.

Anglo plans to deploy six fully autonomous Epiroc Pit Viper 351s at the operation

IM: How easy is it to implement fully autonomous drilling operations in Peru from a regulatory perspective? How does it compare with other countries?

TC: Anglo American’s approach is engaging with regulatory authorities from the beginning, and that is what we have done in Peru. We believe our stakeholders see the advantages of having a modern and fully digital mine operating in the country, from a safety, efficiency and sustainability perspective.

IM: How many rigs out of the “multiple” drill rigs you ordered from Epiroc will be autonomous? What does the timeline look like from here in terms of them reaching their capacity? When will their control and oversight be integrated into the remote operations centre?

TC: Quellaveco will have six Pit Viper 351s that operate fully autonomously and three SmartRoc D65s that operate in tele-remote (operator controlled from a distance with some autonomous functions). We aim to integrate full control and oversight of the drill fleet into the remote operations centre by the second half of this year.

Anglo American looks to leverage hydrogen power tech on Aurizon’s Moura rail corridor

Australia’s largest rail freight operator, Aurizon, and Anglo American have agreed to work together on a feasibility study to assess the introduction of hydrogen-powered trains for bulk freight.

Aurizon and Anglo American have entered into an agreement to conduct the study that will explore the application of Anglo American’s proprietary hydrogen fuel cell and battery hybrid power units in heavy haul freight rail operations. If the study is successful, the agreement between the two companies could be extended to further phases of collaboration, which could include detailed engineering and the development of a hydrogen-fuelled heavy haul locomotive prototype.

The feasibility study, commencing in January, will focus on the potential deployment of Anglo American’s hydrogen power technology on Aurizon’s Moura rail corridor that operates between Anglo American’s Dawson metallurgical coal mine and the Gladstone Port, and the Mount Isa rail corridor that operates between the North West Minerals Province to Townsville Port, via Aurizon’s Stuart Terminal. The study is expected to be completed in 2022.

As part of its commitment to carbon-neutral mines by 2040, Anglo American has developed green hydrogen solutions for its ultra-class 290-t payload mine haul trucking fleet. The company’s combination of powertrain technologies, designed to operate safely and effectively in real-world mine conditions, will displace the use of the majority of diesel at its mining operations, with an advanced trial of the prototype truck at its Mogalakwena platinum group metals mine in South Africa.

The decarbonisation of Aurizon’s supply chains is at the centre of its target to reach net zero operational emissions by 2050. The rail freight operator has also commenced research and development for battery-powered trains with a number of industry parties and Australian universities.

“Hydrogen offers enormous opportunity in decarbonising and continuing to improve the competitiveness of Australia’s export supply chains,” Aurizon’s Managing Director and CEO, Andrew Harding, said. “This is especially true for bulk products underpinning the Australian economy including minerals, agricultural products and fertilisers, industrials and general freight.

“Zero-carbon hydrogen-powered trains would also significantly boost the current environmental benefits of transporting more of Australia’s bulk freight on rail. Rail freight already produces up to 16 times less carbon pollution per tonne kilometre than road.”

He concluded: “Aurizon is excited to be teaming up with Anglo American on this project, particularly given their success to date in developing unique technology solutions for use in mine haul fleets.”

Tyler Mitchelson, CEO of Anglo American in Australia, said: “Anglo American has committed to carbon-neutral operations by 2040, and we are aiming to reduce our Scope 3 emissions by 50% in the same timeframe. We know that we cannot achieve all of this alone, so we are working with partners along our value chains and outside our industry to find technical solutions to decarbonise.

“This collaboration with Aurizon is a great example of the power of partnerships to help address the urgent issue of climate change, while we also look to catalyse new markets to support the development and growth of the hydrogen economy,” he said.

Tony O’Neill, Technical Director of Anglo American, added: “Our agreement with Aurizon marks the first time our hydrogen power technology could be tested beyond our existing mine haul truck program. Displacing our use of diesel is critical to eliminating emissions at our sites and along our value chain. We believe that our innovative hydrogen-led technology provides a versatile solution, whether for trucks or trains or other forms of heavy-duty transport.”

The North West Mineral Province contains about 75% of Queensland’s base metal and minerals, including copper, lead, zinc, silver, gold, cobalt and phosphate deposits, according to Anglo. The province also has the potential to become a globally significant supplier of high-quality vanadium to the energy storage and steel markets with a number of projects under assessment.

The 180 km Moura rail corridor from Dawson to the Gladstone port, and the 977 km Mt Isa rail corridor from Mt Isa to Townsville Port both use diesel-fuelled locomotives.

(Pictured from left to right: Mick de Brenni, Minister for Energy, Renewables and Hydrogen; Tyler Mitchelson, Deputy Premier, Steven Miles; and Andrew Harding)

Anglo American signals design changes at Woodsmith polyhalite project

Anglo American has outlined plans to change elements of the design at its Woodsmith polyhalite project in the UK, which will have a bearing on both the sinking of the two main shafts and development of the underground mining area at the project.

The company has been running a detailed technical review on Woodsmith since mid-2020 to ensure the technical and commercial integrity of the full scope of its design. This followed the acquisition of the asset as part of a takeover of Sirius Minerals earlier that year.

“Now largely complete, the review has confirmed the findings of Anglo American’s due diligence that a number of elements of the project’s design would benefit from modification to bring it up to Anglo American’s safety and operating integrity standards and to optimise the value of the asset for the long term,” the company said.

Anglo is also making a change to the leadership at Woodsmith following its integration into Anglo American and ahead of the full project execution phase. Tom McCulley, who has led the development of the Quellaveco copper project in Peru, will take over from Chris Fraser as CEO of Crop Nutrients. This will see Fraser step aside and take on a strategic projects role for Anglo.

“The Woodsmith team is further developing the engineering to optimise the configuration of the project, recognising the multi-decade life of the mine,” Anglo said.

Particular attention is on the aspects identified at the outset of Anglo American’s ownership – namely, the sinking of the two main shafts, the development of the underground mining area, and the changes required to accommodate both increased production capacity and the more efficient and scalable mining method of using only continuous miners, it said.

The sinking of the two main shafts is due to be carried out using Herrenknecht’s Shaft Boring Roadheader (SBR) technology. DMC Mining, a company familiar with the technology thanks to its work sinking shafts at Jansen in Saskatchewan, Canada, was previously tasked with sinking the production and service shaft, each around 1,500 m deep, and two smaller shafts associated with the materials transport system, each approximately 350 m deep. Its contract was ended in 2020.

These improvements will, the company said, require the installation of additional ventilation earlier in the development of the underground mining area.

“Anglo American expects that these changes to the design of the mine infrastructure – which will result in a different, enhanced configuration and therefore a different construction and production ramp-up schedule – will ensure that its exacting standards are met and the full commercial value of the asset is realised,” the company said.

Mark Cutifani, Chief Executive of Anglo American, said: “We are very happy with the high quality and exciting potential of Woodsmith, with the scale and quality of the polyhalite orebody pointing to a quartile one operating cost position and strong margins. This is a very long-life asset and we are going to take the necessary time to get every aspect of the design right to match our long-term vision and value aspirations.

“We have said from the outset that we expect to make improvements and that we will execute certain elements of the construction differently and with a more conservative schedule. We expect to have completed our design engineering, capital budget and schedule at the end of 2022, with a fully optimised value case that recognises the upside potential we see in Woodsmith, and we will then submit the full project to the board.”

In the meantime, construction of the major critical path elements of the project, principally the two main shafts and the mineral transport tunnel, is progressing, with approximately $700 million of capital expected to be invested in 2022, Anglo said.

The plan at Woodsmith under previous owners Sirius was to extract polyhalite via two mine shafts and transport this outside of the National Park to Teesside on a conveyer belt system in an underground tunnel. It would then be granulated at a materials handling facility, with the majority being exported to overseas markets. The company was previously aiming to achieve first product from the mine by the end of 2021, ramping up to an initial production capacity of 10 Mt/y and then full production of 20 Mt/y.

The changes to McCulley’s and Fraser’s roles are effective January 1, 2022. Anglo American has appointed Adolfo Heeren as CEO of Anglo American in Peru, effective from the same date. Heeren will work together with McCulley during the first half of 2022 to ensure a smooth transition from the construction and commissioning phase of Quellaveco into operations, expecting first copper production in mid-2022.

Anglo American sets carbon-neutral shipping goal

Anglo American has set an ambition to achieve carbon neutrality across its controlled ocean freight activities by 2040, with an interim 30% reduction in emissions by 2030.

This ambition is aligned with the goals of Anglo American’s Sustainable Mining Plan, which include achieving carbon-neutral mining operations by 2040 and an ambition to reduce Scope 3 emissions by 50% by 2040.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “Connecting our customers with the metals and minerals they need in a way that is safe, efficient and sustainable is a key priority for us, so our ambition for carbon neutral controlled ocean freight is a natural extension of our commitment to be carbon neutral across our mining operations by 2040.

“Since establishing our shipping desk in 2012, we have built a diverse portfolio and today we transport more than 70 Mt of dry bulk products per year to our customers around the world. We are committed to playing an active role in accelerating the transition to a more sustainable shipping sector, a crucial component in our efforts to extend our positive impact beyond our mine sites. This ambition further cements that commitment and will help us shape a clearer path towards decarbonisation.”

Anglo American has adopted high standards in vessel efficiency across its chartered fleet and is exploring a comprehensive framework of complementary sustainability measures, an approach that will be backed by regular and validated emissions performance reporting, the company said. Vessel retrofits, the use of voyage optimisation software, and support for technology development to help enable the switch from conventional fuel oil to sustainable marine fuels are all part of its efforts to decarbonise ocean freight activities.

In 2020, Anglo American announced the introduction of LNG-fuelled Capesize+ vessels to its chartered fleet, taking advantage of LNG’s ability to incrementally decarbonise shipping. Anticipated environmental benefits include a circa-35% reduction in carbon emissions compared with standard marine fuel, while also using new technology to eliminate the release of unburnt methane, or so-called “methane slip”.

Anglo American is also participating in industry efforts to accelerate the development of alternative low-carbon and zero-carbon fuels.

“We conducted a successful trial using sustainable biofuel, converted from waste cooking oil and used to power a chartered Capesize ship, with the aim to operationalise biofuel into our marine fuel mix,” it said. “We are also part of an industry consortium looking into the viability of green ammonia.”

Recognising the potential of hydrogen in enabling a carbon-neutral pathway for ocean freight, Anglo American recently joined forces with Hydrogenious Maritime AS, a joint venture between Hydrogenious LOHC Technologies, a portfolio company of AP Ventures, and Johannes Østensjø dy AS. The two companies will collaborate to explore the use of emission-free liquid organic hydrogen carrier-based applications on Anglo American’s chartered fleet. Anglo American is also exploring opportunities to align its efforts on the development of zero-carbon fuel for maritime operations to larger hydrogen supply chains in South Africa and Chile.

Anglo American recently joined more than 200 industry players as a signatory of the Call to Action for Shipping Decarbonisation, calling for decisive government action to enable full decarbonisation of international shipping by 2050.

A partner of the Global Maritime Forum, Anglo American was also a founding signatory and an architect of the Sea Cargo Charter – created by some of the world’s largest energy, agriculture, mining and commodity trading companies. The aim of this group is to establish a standard methodology and reporting framework to allow charterers to measure and align their emissions from ocean transportation activities. Anglo American is also a signatory of the Getting to Zero Coalition, an alliance committed to getting commercially viable deep sea zero emission vessels powered by zero emission fuels into operation by 2030.

Anglo American to recycle tyres, conveyor belts with Novum Energy’s help

Anglo American says it is moving towards a sustainable “zero-waste future” at its five metallurgical coal operations in central Queensland, Australia, through a new collaboration with Novum Energy Australia that will see rubber waste products transformed into useable raw materials.

Used mining truck tyres and conveyor belts from the mine sites will be supplied to Novum, who will convert the rubber into industrial products including heavy and light oils, carbon black, syngas and steel.

Today, the Assistant Minister for Local Government, Nikki Boyd, and Banana Shire Mayor, Nev Ferrier, officially opened Biloela’s Raedon Street Industrial Estate where Novum will begin construction of its thermal recovery processing facility.

Anglo American Metallurgical Coal CEO, Tyler Mitchelson, said the partnership would create regional employment opportunities as Anglo American shifts towards pursuing circular economy initiatives.

“The new facility is located in the Banana Shire where our Dawson metallurgical coal mine is located,” Mitchelson said. “We have the opportunity to play a role in reshaping the economy towards a more sustainable path and contribute to creating new industries in the region.”

Novum Energy Australia Managing Director, Rowan Kendall, said the new plant at Biloela would be the first of its kind to be constructed in Australia and would employ up to 25 full-time employees once fully operational.

“Our partnership with Anglo American has enabled Novum to construct this industry-leading technology in regional Queensland which will be able to process up to 8,000 t of waste tyres and conveyor belts each year from 2022,” Kendall said.

“By applying a thermo vacuum technology, we aim to use the gas recovered from recycling the rubber to generate electricity to supply power to the processing plant and surplus electricity to electric vehicle charging stations to be built on-site.”

Anglo American says its Sustainable Mining Plan sets out ambitious targets to improve the sustainability of its operations across the world.

GroundProbe reflects on geohazard monitoring developments on 20th anniversary

GroundProbe says it is immensely proud to be celebrating 20 years of operation and 20 years of keeping people and communities safe.

Over the last two decades, the company has expanded from a home-grown start-up to become a global innovation powerhouse and the trusted partner of companies around the world, it said.

GroundProbe calls itself a global leader in real-time geohazard monitoring technologies that help manage risk, ensure safety and increase productivity across mining and civil projects. Evolving from a PhD project at the University of Queensland, Australia, in 1993, by 2001, GroundProbe’s founders commercialised the world’s first patented Slope Stability Radar (SSR), which is now widely used to monitor mine walls and warn before collapses occur.

GroundProbe CEO and founder, David Noon, said that the success of GroundProbe’s business and its continual year-on-year growth is built on a culture of innovation and customer intimacy that permeates through every level of the company.

“GroundProbe has now deployed more than 700 systems and support services to customers in more than 35 countries,” he said. “To get to that level, we have proudly built long-term, trusted relationships with the top 20 mining and resources companies, globally.

“Across all of those deployed radars and customers, and in our entire 20-year history, I am most proud to say that we have fulfilled our ultimate goal by making mining safer. Our technology has never failed to detect a collapse, ultimately saving numerous lives.”

Anglo American’s Head of Geotechnical – T&S Group Mining, Lesley Munsamy, recently stated that the company is honoured to have played a part in GroundProbe’s history. The miner celebrated a number of “firsts” with GroundProbe, with the capturing of the first ever slope deformation data, the detection of the first ever slope failure and the first international radar deployment at Anglo American mine sites, GroundProbe said.

“Our mutually-beneficial partnership is based on GroundProbe’s impeccable safety track record and continuous innovation of its hardware and software tools,” Munsamy said. “The precise and valuable data that GroundProbe provides our sites has had an impact on our safety and productivity by enhancing our risk-management practices.

“GroundProbe redefined the slope risk management practices across the world. The availability of reliable real-time monitoring has had a significant impact on safety, a contribution that cannot be underestimated.”

South Africa’s hydrogen potential validated in Anglo American-led feasibility study

Anglo American, in collaboration with South Africa’s Department of Science and Innovation (DSI), the South African National Development Institute (SANEDI), Engie and Bambili Energy, has announced the results of a feasibility study to explore the potential for a hydrogen valley anchored in the Bushveld complex of South Africa, along the industrial and commercial corridor to Johannesburg and to the south coast at Durban.

The feasibility study, which was launched in March of this year, identifies three hubs – Johannesburg, extending to Rustenburg and Pretoria; Durban, encompassing the city itself and Richards Bay; and Limpopo province centred around Anglo American’s Mogalakwena platinum group metals (PGMs) mine (pictured) – with a fundamental role to play in integrating hydrogen into South Africa’s economy, and in establishing South Africa and its renewable energy resources as a strategically important centre for green hydrogen production, Anglo says.

Nine key pilot projects have also been identified across these hubs and are recommended to be prioritised by developers. They span the transport, industrial and construction sectors.

Following the publication of the feasibility study results, Anglo says it will work with South Africa’s DSI and the other partners on the implementation of relevant projects, as well as continue to progress its own company-led initiatives towards development of the hydrogen economy.

Anglo is already investing in renewable hydrogen production technology at its Mogalakwena PGMs mine and in the development of hydrogen-powered fuel cell mine haul trucks (FCEVs) – the world’s largest to run on hydrogen.

Natascha Viljoen, CEO of Anglo American’s PGMs business, said: “The opportunity to create new engines of economic activity through hydrogen has been validated through this feasibility study with our partners. As a leading producer of PGMs, we have for some years been working towards establishing the right ecosystem to successfully develop, scale-up and deploy hydrogen-fuelled solutions. These include investing in innovative ventures and enabling technologies, as well as forging wide-ranging collaborations across industry, to fully harness the transformative potential of green hydrogen for our economy in South Africa.”

Maptek helps Anglo American with continuous drill and blast process improvements

Maptek’s BlastLogic drill and blast software is helping Anglo American’s mines significantly improve its processes, the Australia-based company said in its latest Forge Newsletter.

The miner commenced implementation of Maptek BlastLogic in 2017 to deliver the digitisation of critical drill and blast information. The goal was to transform inconsistent practices into an integrated function underpinning safety and value protection.

In a Technical and Innovation update from May 2021, Anglo American reported a 50% improvement in drill and blast execution versus plan, which, it said, was enabled via real-time, in-field digital platforms.

Dr Alan Tordoir, Lead Drill & Blast Group Mining Technical & Sustainability for Anglo American, oversees drill and blast for 20 surface and 12 underground operations. He benchmarked the original rollout of BlastLogic at six open-pit sites, which has enabled streamlined uptake at a total of 15 global locations so far, according to Maptek.

“It’s a really exciting time to be in the industry, with a lot of new technologies and processes emerging,” Dr Tordoir says.

Traditional paper-based drill and blast processes are inefficient, complicated by multiple platforms contributing to design, hole placement and tie-up, according to Maptek. Data transfer between stages leads to further communication challenges between the field and office.

BlastLogic stores a single source of truth for all processes, Maptek says, with the outcome being a significant increase in downstream productivity and better management of explosive risks. It is an all-in-one solution adding value to open-pit operations through streamlined drill and blast design, tracking and analysis.

“It enables operations to make blast implementation decisions with reference to mine plans, geology and geotechnical data with instant data connection and visualisation in the field or office,” Maptek says.

Anglo American, Maptek says, has found that design and execution teams have been brought closer together by using BlastLogic, while providing the data in a timely manner allows every level of the organisation to make proactive decisions.

“However good a new system is, the changeover phase can be disruptive,” Maptek says. “Maptek supports customers through BlastLogic configuration, training and implementation, aiming for minimal disruption to the production environment.”

Dr Tordoir paid particular attention to proving the benefits during the Anglo American rollout, mapping out the process and troubleshooting at the original sites so that replication was straightforward for subsequent sites.

Benchmarked data was made universally available, so teams could track their adoption trajectory curve.

“When an operation can see how others have overcome initial problems, uptake is faster,” Maptek says.

Maptek has found that other customers have a similar change management experience.

“Recent graduates may be initially more comfortable with new systems, but longer-term players soon recognise the benefits of digital processes and quickly absorb them into a new integrated workflow,” it says.

Anglo American found continuous improvement is much easier when multiple sites are sharing the same system.

“Operations can learn from each other and can see what good practice looks like,” Maptek says. “The key performance indicator data showed how some sites were performing better than others.”

Having a unified platform for design work enables consistent training and upscaling. This ensures that engineers are performing at the required level to deliver fit for purpose designs that promote safe and efficient operations.

“Improvement is a never-ending journey,” Dr Tordoir concluded.

Upcoming releases of BlastLogic will introduce a drilling data entry on the blast loading tablets for sites with contractor drill rigs, so all the drilling and charging data is captured for analysis, Maptek says.

“Automation of the blast design process is an exciting innovation by Maptek to advance analysis of the interaction of different factors as part of blast design,” it said. “Engineers can then better understand how they can trade off objectives to determine the value that can be gained by small incremental design changes.”

The future will also bring blast design deeper into the upstream planning process and broader cross-operation scenario design, according to the company.

Plotlogic’s precision mining pursuit bolstered with new investor funds

Plotlogic’s mission to deliver precision mining across the world has been given a boost with A$7.5 million ($5.5 million) of funding from international investors.

Plotlogic’s primary focus is on providing accurate real-time orebody knowledge to enable greater operational efficiency and resource utilisation. Its OreSense® technology has demonstrated its ability to improve health and safety, enhance overall mining operations and deliver tangible productivity gains, according to the company.

Andrew Job, former mining manager and company Founder, recently completed his PhD in artificial intelligence-based sensing at University of Queensland, and has said “Plotlogic’s technology is an exciting development in resource knowledge and forms an important part of our growth as we digitally transform our mining businesses”.

Plotlogic’s most recent international deployment of its OreSense system was to an Anglo American project in South Africa. This comes on top of deployments at BHP and South32’s operations.

The company says it continues to increase its global footprint with imminent deployments to South America, North America, Asia and Russia.

Precision mining with the help of technologies like OreSense have the potential to increase worldwide industry value by $370 billion/y, according to Plotlogic, while reducing carbon emissions and improving the sustainability of mines over their life cycle.

To support commercial expansion, Plotlogic’s team has grown substantially, with the team currently sitting at 30 people, up from only six a year ago. It also has plans to double in size before the end of this year.

Anglo American and Salzgitter to explore iron ore’s role in low-carbon steelmaking

Anglo American has signed a memorandum of understanding (MoU) with Salzgitter Flachstahl to collaborate on the decarbonisation of the steelmaking industry by exploring ways to reduce carbon emissions.

Salzgitter Flachstahl manufactures a range of steel products optimised for their particular application and is the largest steel subsidiary in the Salzgitter Group, Anglo explained.

The two companies intend to conduct research into feed materials, including iron ore pellets and lump iron ores, suitable for use in direct reduction (DR) steelmaking based on natural gas and hydrogen, a significantly less carbon intensive production method than the conventionally used blast furnace process. The collaboration may also explore developing broader hydrogen technologies.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “We have set ambitious targets to help address climate change by reducing our greenhouse gas emissions, including achieving carbon neutrality across Anglo American’s operations by 2040.

“While steel is a critical building block of our modern lives, and itself a critically needed material for the energy transition, the steel industry is a significant producer of carbon dioxide. That’s why we are committed to collaborating with industry-leading players like Salzgitter Flachstahl to develop strategies that capitalise on the premium quality properties of our products to help drive emissions reduction across the entire steelmaking sector.”

The MoU reinforces Anglo American’s existing commitments to the steelmaking industry, ensuring it continues to provide high-quality iron ore products that help drive efficiency and minimise emissions while new technologies are developed to achieve lower carbon steelmaking, the company said.

It also builds on the long-standing relationship between the two companies and provides a platform to explore opportunities for emissions abatement in the context of the sustainable energy transition.

Salzgitter, as part of the European steel industry, has been developing new steelmaking technologies to reduce its carbon footprint under its SALCOS® (Salzgitter Low CO2 Steelmaking) project. The project is targeting a switch from the use of blast furnace production based on coal to wholly DR steelmaking.

Ulrich Grethe, Chairman of the Management Board of Salzgitter Flachstahl GmbH and member of the Group Management Board of Salzgitter AG, said: “With this project we continue to progress important milestones on the way to low CO2 steel production. In driving our SALCOS technology concept forward, we aim to decarbonise steel production as efficiently and quickly as possible. We are delighted to be partnering with Anglo American, our long-standing major supplier of high-grade ores, for joint reflection and potential projects.”

DR steelmaking depends on high-quality iron ore feedstock, or further beneficiated feedstock from the same locations.