Steel coil rolling mill Salzgitter Flachstahl, part of German steel group Salzgitter, has signed a memorandum of understanding with Canada’s Baffinland Iron Mines Corporation to investigate the use of direct shipping ore mined in Nunavut, the northernmost territory of Canada, in low carbon steel production, Salzgitter said Feb. 6.
Baffinland’s operation is different to many others in that its high-grade iron ore is crushed and screened on site, and then shipped directly to markets — no concentrating or processing is needed, and as a result no tailings are produced, Salzgitter said, explaining why it had chosen the supplier for its future green steel production.
In 2025, the German company will begin incrementally switching its steel production to hydrogen-based processes under Salcos, or Salzgitter Low CO2 Steelmaking transformation, with the aim to achieve carbon-free production by 2033.
Under the MOU, Baffinland and Salzgitter Flachstahl will consider which iron ore supply strategies are best suited to hydrogen-based steel production in a direct reduction plant. The companies will also work together to optimize the Scope 3 emissions of their shared value chains.
Platts, part of S&P Global Commodity Insights, assessed the 62% Fe Iron Ore Index at $124.05/dry mt CFR North China on Feb. 6, up $6.4/dmt from the beginning of the year, but down $22.55/dmt or 15% from the $146.6/dmt level on the same date in 2022.
— Ekaterina Bouckley
