Japanese conglomerate Itochu Corporation and Abu Dhabi-listed steel producer Emirates Steel Arkan have jointly initiated a feasibility study to assess the viability of constructing a new low-carbon iron processing facility in Abu Dhabi. This development was reported by Nikkei Asia.
Collaboration with JFE Steel for Iron Production
The proposed plant is set to be developed in collaboration with Japan’s JFE Steel Corporation. The facility is expected to have an annual production capacity of approximately 2.5 million metric tons of reduced iron, with operations slated to commence from 2027 onwards.
Iron Ore Supply from Brazil
The plant will rely on a steady supply of high-grade iron ore sourced from Brazil. This iron ore will be processed into reduced iron at the UAE facility and subsequently exported to Japan.
CSN Mineracao, a Brazilian mining company in which Itochu holds a stake, will be the supplier of iron ore for the project, as outlined in the Nikkei Asia report.
Sustainability Focus
The new plant is expected to play a crucial role in establishing a global low-carbon iron supply chain, aligning with growing global efforts to reduce carbon emissions in the steel industry.