ArcelorMittal announces CAD$205 million decarbonisation investment in its flagship Canadian mining operations with support from the Quebec government
November 03 2021 - 01:35PM
ArcelorMittal announces CAD$205 million decarbonisation investment
in its flagship Canadian mining operations with support from the
Quebec government
3 November
2021, 18:35
CET
At an event held at COP26 today, ArcelorMittal (‘the Company’)
and the government of Quebec announced a CAD$205 million investment
by ArcelorMittal Mining Canada (‘AMMC’) in its Port-Cartier pellet
plant, enabling this facility to convert its entire 110 million
tonne annual pellet production to direct reduced iron (‘DRI’)
pellets by the end of 2025.
The investment, in which the Quebec government will contribute
through an electricity rebate of up to CAD$80 million, will enable
the Port-Cartier plant to become one of the world’s largest
producers of DRI pellets, the raw material feedstock for ironmaking
in a DRI furnace. The project includes the implementation of a
flotation system that will enable a significant reduction of silica
in the iron ore pellets, facilitating the production of a very
high-quality pellet.
The project will deliver a direct annual CO2e reduction of
approximately 200,000 tonnes at AMMC’s Port-Cartier pellet plant,
equivalent to over 20% of the pellet plant’s total annual CO2e
emissions. This reduction in CO2e emissions will be achieved
through a reduction in the energy required during the pelletising
process.
A DRI plant uses natural gas to reduce iron ore, resulting in a
significant reduction in CO2 emissions compared with coal-based
blast furnace ironmaking. In Hamburg, Germany, ArcelorMittal is
trialing replacing natural gas with hydrogen to make DRI, with its
industrial scale pilot project anticipated to be commissioned
before the end of 2025. The DRI installations the Company has
announced it is developing in Belgium, Canada and Spain are all
being constructed to be hydrogen-ready, so as and when green
hydrogen is available in sufficient quantities at affordable prices
the Company can produce DRI with near zero-carbon emissions.
Approximately 250 jobs are expected to be created during the
construction phase of the project in Port-Cartier, which is
scheduled to be begin mid-2023 and complete before the end of
2025.
Expressing the Quebec government’s support for the
project, Premier François
Legault said:
“With this project, the Port-Cartier plant will become one of
the world's largest producers of direct reduction pellets. The
market is increasingly evolving towards this technology. We are
therefore ensuring that ArcelorMittal will continue to create
wealth in Quebec for many years. We are positioning our regions at
the heart of the green economy of tomorrow. My message to companies
looking for a place to reduce their GHG emissions is come and see
us. We'll help you carry out your projects promptly. Quebec is the
best place in the world to invest in the green economy. To build
together a greener, more prosperous and prouder Quebec.’’
Aditya Mittal, ArcelorMittal CEO, said:
“This project has an important role to play in our efforts to
reduce our group’s CO2e emissions intensity by 25% by 2030, and our
longer-term ambition to reach net zero by 2050. Not only does it
deliver a significant reduction in our emissions at AMMC, but it
also expands our ability to produce high-quality direct reduced
iron pellets, which we will need in significant volumes as we
transition to DRI-EAF steelmaking at our steel plants in Canada and
Europe.
“I am grateful to Premier Legault and his government for the
support it is providing in realising this project. It is the first
significant decarbonisation project we have announced for our
mining business and fitting that we are able to make this
announcement at COP26 as it exemplifies the transformational change
we need to deliver this decade as we move towards becoming a
carbon-neutral business.”
Mapi
Mobwano, CEO, ArcelorMittal
Mining Canada,
added:
“This investment will see us become one of the biggest direct
reduction pellet producers in the world, thereby propelling
ArcelorMittal Mining Canada into the forefront of mining and steel
decarbonisation. From 2025 onwards we will have the capacity
to produce ten million tonnes of very high-quality iron oxide
pellets, with low silica content and high iron density, which will
be highly strategic in the years ahead. This transformation
will enable us to reduce our own current emissions by 200,000
tonnes of CO2e per year – equivalent to removing 57,600 cars from
the road each year. Moreover, it will support a significant
reduction in the carbon footprint of primary
steelmaking. These pellets are the feedstock for DRI-EAF
steelmaking, which given its significantly lower carbon footprint
is expected to replace a significant amount of blast furnace
capacity in the coming decades. It also provides a boost to the
local economy and community as 250 jobs will be created for the
construction phase which will start in the summer of 2023.”
ENDS
About ArcelorMittal
ArcelorMittal is the world's leading steel and
mining company, with a presence in 60 countries and primary
steelmaking facilities in 17 countries. In 2020, ArcelorMittal had
revenues of $53.3 billion and crude steel production of 71.5
million metric tonnes, while iron ore production reached 58.0
million metric tonnes.
Our goal is to help build a better world with
smarter steels. Steels made using innovative processes which use
less energy, emit significantly less carbon and reduce costs.
Steels that are cleaner, stronger and reusable. Steels for electric
vehicles and renewable energy infrastructure that will support
societies as they transform through this century. With steel at our
core, our inventive people and an entrepreneurial culture at heart,
we will support the world in making that change. This is what we
believe it takes to be the steel company of the future.
ArcelorMittal is listed on the stock exchanges
of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and
on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and
Valencia (MTS).
For more information about ArcelorMittal please
visit: http://corporate.arcelormittal.com/
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1 AMMC’s pellet plant currently produces 10 million tonnes of
pellets annually, of which 7 million tonnes are blast furnace
pellets and 3 million tonnes are direct reduced iron pellets
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