REG - Anglo American PLC - Anglo American partners with H2 Green Steel

Anglo AmericanAnnouncement

04/04/2023 08:00

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RNS Number : 1952V  Anglo American PLC  04 April 2023

 

 4 April 2023
 Anglo American partners with H2 Green Steel to advance low carbon steelmaking

Anglo American has signed a memorandum of understanding with H2 Green Steel,
the Swedish hydrogen and steel producer, to work together on the advancement
of low carbon steelmaking processes.

 

The agreement includes studying and trialling the use of premium quality iron
ore products from Anglo American's Kumba mines in South Africa and Minas-Rio
mine in Brazil as feedstock for H2 Green Steel's direct reduced iron (DRI)
production process at its Boden plant in Sweden.

 

Peter Whitcutt, CEO of Anglo American's Marketing business, said:
"Collaboration with industry leaders who share a vision for decarbonised
steelmaking is central to our commitment to reduce emissions in our value
chains.

 

"Our work with H2 Green Steel will focus on exploring ways for premium,
responsibly produced iron ore from our operations to be used as feedstock in
the Boden plant's low carbon production process, paving the way to a cleaner,
greener way to produce steel - one of the backbone materials for the roll-out
of energy transition infrastructure and for ongoing global socio-economic
development. "

 

Luisa Orre, Chief Procurement Officer, H2 Green Steel, said: "Our purpose is
to decarbonise hard to abate sectors, and this is only possible with strong
partnerships along the value chain with a true commitment to reducing scope 1,
2 and 3 emissions. We are impressed by Anglo American's efforts to bring
high-quality iron ore products to customers which focus on low carbon iron and
steelmaking, and we look forward to continue working with them, not only for
our first green hydrogen integrated steel plant in Sweden but for other future
locations globally".

 

H2 Green Steel was launched in 2021 to accelerate the decarbonisation of the
steel industry by using green hydrogen. The company is developing a fully
integrated, digitalised, and circular DRI plant in Boden, northern Sweden,
which will produce green steel, reducing CO₂ emissions by up to 95% compared
to traditional steelmaking. The founder and largest shareholder of H2 Green
Steel is investment company Vargas.

 

 

 

Anglo American's ambition for 50% Scope 3 emissions reduction by 2040

 

Climate science has set an imperative to decarbonise the global economy as
quickly as possible.

 

Building on the series of environmental and other commitments set out in its
2018 Sustainable Mining Plan, Anglo American set out an ambition in 2021 to
reduce its Scope 3 emissions by 50% by 2040, building on a pre-existing
commitment to reach operational (i.e., Scope 1 and 2) carbon neutrality by the
same year. With the majority of Anglo American's Scope 3 emissions linked to
materials - steelmaking coal and iron ore - sold into the steelmaking
industry, the steel value chain is central to our decarbonisation efforts.

 

Anglo American's approach includes joining forces with like-minded customers
and others with similar ambitions for a lower carbon future. For example,
Anglo American has signed agreements with a number of major steelmakers in
Europe and Asia to research efficient feed materials suited for use in direct
reduced iron (DRI) steelmaking, including iron ore pellets and lump iron ore.

 

Steel production by DRI is a technically proven production method estimated to
be significantly less carbon intensive than the traditional blast furnace and
basic oxygen furnace integrated steelmaking process. When using green hydrogen
as a reducing agent, the process can be made largely CO(2)-free.

 

 

For further information, please contact:

 

 Media                                                                              Investors

 UK                                                                                 UK

 James Wyatt-Tilby                                                                  Paul Galloway

 james.wyatt-tilby@angloamerican.com                                                paul.galloway@angloamerican.com (mailto:paul.galloway@angloamerican.com)
 (mailto:james.wyatt-tilby@angloamerican.com)

                                                                                  Tel: +44 (0)20 7968 8718
 Tel: +44 (0)20 7968 8759

                                                                                  Emma Waterworth
 Marcelo Esquivel                                                                   Emma.waterworth@angloamerican.com (mailto:Emma.waterworth@angloamerican.com)

Tel: +44 (0) 20 7968 8574
 marcelo.esquivel@angloamerican.com (mailto:marcelo.esquivel@angloamerican.com)

 Tel: +44 (0)20 7968 8891

                                                                                  Michelle Jarman

                                                                                  michelle.jarman@angloamerican.com (mailto:michelle.jarman@angloamerican.com)
 Rebecca Meeson-Frizelle

 Rebecca.meeson-frizelle@angloamerican.com                                          Tel: +44 (0)20 7968 1494
 (mailto:Rebecca.meeson-frizelle@angloamerican.com)

 Tel: + 44 (0)20 7968 1374

 South Africa

 Nevashnee Naicker

 nevashnee.naicker@angloamerican.com

 Tel: +27 (0)11 638 3189

 Sibusiso Tshabalala

 sibusiso.tshabalala@angloamerican.com
 (mailto:sibusiso.tshabalala@angloamerican.com)

 Tel: +27 (0)11 638 2175

Notes to editors:

 

About H2 Green Steel

H2 Green Steel was founded in 2020 with the ambition to accelerate the
decarbonization of the steel industry, using green hydrogen. Steel, which is
one of the world's largest carbon dioxide emitters, is the company's first
business vertical. The founder and largest shareholder of H2 Green Steel is
Vargas, which is also co-founder and one of the larger shareholders in Swedish
battery maker Northvolt. H2 Green Steel is headquartered in Stockholm, Sweden,
with its first green steel plant under development in Boden, northern Sweden.
www.h2greensteel.com (http://www.h2greensteel.com)

 

Anglo American is a leading global mining company and our products are the
essential ingredients in almost every aspect of modern life. Our portfolio of
world-class competitive operations, with a broad range of future development
options, provides many of the future-enabling metals and minerals for a
cleaner, greener, more sustainable world and that meet the fast growing every
day demands of billions of consumers. With our people at the heart of our
business, we use innovative practices and the latest technologies to discover
new resources and to mine, process, move and market our products to our
customers - safely and sustainably.

 

As a responsible producer of diamonds (through De Beers), copper, platinum
group metals, premium quality iron ore and steelmaking coal, and nickel - with
crop nutrients in development - we are committed to being carbon neutral
across our operations by 2040. More broadly, our Sustainable Mining Plan
commits us to a series of stretching goals to ensure we work towards a healthy
environment, creating thriving communities and building trust as a corporate
leader. We work together with our business partners and diverse stakeholders
to unlock enduring value from precious natural resources for the benefit of
the communities and countries in which we operate, for society as a whole, and
for our shareholders. Anglo American is re-imagining mining to improve
people's lives.

www.angloamerican.com (http://www.angloamerican.com)

 

 

 

Forward-looking statements:

This document includes forward-looking statements. All statements other than
statements of historical facts included in this document, including, without
limitation, those regarding Anglo American's financial position, business,
acquisition and divestment strategy, dividend policy, plans and objectives of
management for future operations (including development plans and objectives
relating to Anglo American's products, production forecasts and Ore Reserve
and Mineral Resource positions) and environmental, social and corporate
governance goals and aspirations, are forward-looking statements. By their
nature, such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Anglo American or industry results to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements.

 

Such forward-looking statements are based on numerous assumptions regarding
Anglo American's present and future business strategies and the environment in
which Anglo American will operate in the future. Important factors that could
cause Anglo American's actual results, performance or achievements to differ
materially from those in the forward-looking statements include, among others,
levels of actual production during any period, levels of global demand and
commodity market prices, mineral resource exploration and development
capabilities, recovery rates and other operational capabilities, safety,
health or environmental incidents, the effects of global pandemics and
outbreaks of infectious diseases, the outcome of litigation or regulatory
proceedings, the availability of mining and processing equipment, the ability
to produce and transport products profitably, the availability of transport
infrastructure, the impact of foreign currency exchange rates on market prices
and operating costs, the availability of sufficient credit, the effects of
inflation, political uncertainty and economic conditions in relevant areas of
the world, the actions of competitors, activities by courts, regulators and
governmental authorities such as in relation to permitting or forcing closure
of mines and ceasing of operations or maintenance of Anglo American's assets
and changes in taxation or safety, health, environmental or other types of
regulation in the countries where Anglo American operates, conflicts over land
and resource ownership rights and such other risk factors identified in Anglo
American's most recent Annual Report. Forward-looking statements should,
therefore, be construed in light of such risk factors and undue reliance
should not be placed on forward-looking statements. These forward-looking
statements speak only as of the date of this document. Anglo American
expressly disclaims any obligation or undertaking (except as required by
applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules,
the Disclosure and Transparency Rules of the Financial Conduct Authority, the
Listings Requirements of the securities exchange of the JSE Limited in South
Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian
Stock Exchange and any other applicable regulations) to release publicly any
updates or revisions to any forward-looking statement contained herein to
reflect any change in Anglo American's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.

 

Nothing in this document should be interpreted to mean that future earnings
per share of Anglo American will necessarily match or exceed its historical
published earnings per share. Certain statistical and other information about
Anglo American included in this document is sourced from publicly available
third-party sources. As such it has not been independently verified and
presents the views of those third parties but may not necessarily correspond
to the views held by Anglo American and Anglo American expressly disclaims any
responsibility for, or liability in respect of, such information.

 

Legal Entity Identifier: 549300S9XF92D1X8ME43

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