JFE Steel’s Meranti Green Steel has signed a Memorandum of Understanding with Anglo American for the supply of high-grade iron ore. This collaboration aims to boost Meranti's new green steel venture in Thailand, focusing on sustainable and low-carbon steel production.
Singapore-based Meranti Green Steel recently announced a critical partnership with Anglo American through a Memorandum of Understanding (MOU). This partnership is set to provide Meranti with high-grade iron ore pellets and iron ore lumps, vital ingredients for their new green steel enterprise in Thailand.
The MOU sets the stage for joint efforts in promoting environmentally friendly steel production. Specifically, it paves the way for Meranti's Direct Reduced Iron (DRI) operations. This process uses high-grade iron ore pellets and iron ore lumps as the primary raw materials and produces low-carbon hot rolled coils.
According to Sebastian Langendorf, the CEO of Meranti Green Steel, the alliance with Anglo American goes beyond mere supply chain mechanics. "This collaboration enables us to work with a world-class partner on responsible shipping and advanced digital solutions for reporting reduced CO₂ emissions," he said.
Timo Smit, the Executive Head of Marketing of Iron Ore at Anglo American, emphasized the future growth of the steel industry in Southeast Asia. He noted that high-quality iron ore can accelerate the adoption of lower-carbon steelmaking technologies. Close collaborations with like-minded partners are pivotal to their sustainable initiatives.
Decarbonization is becoming increasingly significant in the global steel industry. Similar to changes in the automotive sector, green steel production is expected to be a game-changer. Meranti's ambition to lead in this space receives a considerable boost through this partnership.
In the grander scheme, Meranti Green Steel is also actively seeking additional collaborations with mining companies and commodity traders. This will result in a robust and integrated supply chain, ensuring consistent supplies for their DRI operations in Thailand.
The company has ambitious plans that go well beyond this MOU. By creating strong partnerships, Meranti aims to make green steel more accessible, aligning with their vision of balancing development with nature.
The collaboration between Meranti Green Steel and Anglo American is a promising step towards sustainable steel production. It not only enhances Meranti’s capabilities but also advances the industry's collective effort to reduce carbon emissions.