(Yicai Global) March 8 -- BHP Billiton will invest USD15 million over the next three years to help HBIS Group, China’s second-largest steel producer, explore greenhouse gas reduction technologies. It is the Australian company’s second such tie-up with a Chinese steelmaker after Baowu Group.

BHP Billiton and HBIS signed a memorandum of understanding on March 5, the Melbourne-based mining company said today via its official WeChat account. The pair will focus on three key areas of hydrogen-based direct reduction technology, the recycling and reuse of steelmaking slag, and greater use of iron ore blocks to help China’s steel industry achieve neutrality. 

BHP signed a similar agreement with Baowu last November, planning to invest USD35 million over the next five years and share technologies and knowledge on cutting carbon emissions with Baowu.

China pledged at the United Nations in September to strive to bring its total greenhouse gas emissions to a peak by 2030 and become carbon neutral by 2060.

BHP noted that its cooperation with HBIS is part of its USD400 million climate investment plan announced in 2019, which aims to cut carbon emissions in its own operations and downstream firms.

Shijiazhuang-based HBIS, formed in 2008 through the merger of Hebei province’s big two steelmakers Tangsteel Group and Hansteel Group, produced 46.56 million tons of crude steel in 2019.

Editor: Peter Thomas