The key players in Australia’s most lucrative industry and its biggest customer are on the same page about the importance of ‘green’ iron, according to Prime Minister Anthony Albanese.
The nation’s iron ore producers are jostling to stay relevant as China looks to cut down on its emissions amid pollution concerns in the Middle Kingdom.
The likes of BHP, Rio Tinto and Fortescue are studying ways to transform the iron ore they extract from Western Australia’s ground into iron using renewable energy sources, a product termed ‘green iron’, which will then be shipped to China to make ‘green steel’.
Mr Albanese was joined on his Chinese visit by BHP Australia president Geraldine Slattery, Rio Tinto Australia chief executive Kellie Parker, Hancock Iron Ore chief executive Gerhard Veldsman and Fortescue chairman Andrew Forrest.
“One of the things that struck me today from the discussion with the Chinese steel makers as well as the Australian iron ore exporters, is the common interest, which is their common discussion about changing the nature of furnaces, decarbonisation, the use of hydrogen, the use of research as well and collaboration between Australia and China,” Mr Albanese said.
“The Pilbara in Western Australia is the engine room for the world’s iron ore, and we want that to remain the case for a very long period of time.
“We want Australian iron ore to be part of the solution when it comes to lowering emissions, and we understand that China wants that too, and that was reiterated today. These discussions were an important step forward between our two nations.”
Ms Slattery said the Australian-Sino talks have “put a spotlight on the iron ore sector”.
“It speaks to the continued need for productivity, for resilience in the iron ore sector in Australia, and it speaks to the strength and the longevity and the future potential of the relationship between the Australian iron ore producers and our largest customers here in China in decarbonisation,” she said.
“I look forward to what the talks over the next couple will bring to us.”
Ms Parker said steel decarbonisation will deepen an iron ore trade relationship with China that has existed for over five decades.
“We will create the future together on steel decarbonisation. And it takes research, it takes commitment, it takes both countries and companies to be working together,” she said.
Mr Veldsman said making sure Australia’s iron ore industry remains cost-competitive is paramount.
“There’s major challenges facing us, but the one thing we all agree on, steel is really important for the world, and if we want to continue to lift living standards in the world, we need to continue to provide cost-effective steel,” he said.
https://thewest.com.au/business/mining/green-iron-ties-stronger-after-meeting-between-china-and-australias-four-biggest-iron-ore-miners-says-albo-c-19349788
