Rio Tinto has signed an agreement with an India-based steelmaker which will see its Kwinana HIsmelt plant dismantled and relocated to India.
India’s Jindal Steel and Power (JSPL) said it had signed a memorandum of understanding with Rio to use Rio’s HIsmelt, or high-intensity smelting, technology in a fully-integrated steel making facility in Angul, India.
JSPL and Rio will jointly develop and market the smelting technique, which is the first process to be commercialised worldwide for making iron straight from the ore, under a royalty sharing arrangement.
The relocated plant will be owned and operated by JSPL.
Rio Tinto Iron Ore chief executive Sam Walsh said the deal was a “natural progression” for the HIsmelt technology.
“This opportunity with JSPL is most exciting, as we integrate the HIsmelt flow sheet into their existing steel works in Angul, Orissa,” Mr Walsh said.
“We believe the HIsmelt process remains the future or iron-making, particularly in locations where coking coal and good quantity of iron ore lumps are not available and where the need to reduce the environmental footprint is increasing, thereby ensuring the ongoing sustainability of this essential industry.
“HIsmelt is suitable to the resources of India and offers huge environmental benefits to a steelmaker like JSPL.”
JSPL is part of the $US15 billion India-based OP Jindal Group, which currently produces 3 million tonnes of steel annually.
JSPL managing director Naveen Jindal said the company looked forward to developing the HIsmelt technology for use in its steel plant.
