New pathways for the decarbonisation of steelmaking are to be opened up through a collaboration between Anglo American and longstanding customer Thyssenkrupp Steel Europe AG (“Thyssenkrupp Steel”), formalised through a memorandum of understanding which has been signed by the two companies.

The collaboration will focus on joint research to accelerate the development of high-quality feedstock for lower carbon steel production, using both conventional blast furnace and direct reduction iron (DRI) steelmaking – the latter being a less carbon intensive method which requires iron ore of a particularly high quality.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “As the steel sector advances its efforts to transition from traditionally carbon intensive production methods to cleaner, more sustainable processes, Anglo American’s high quality iron ore products will continue to play an important role in enabling low carbon steel production at scale. We are combining the premium physical and chemical qualities of our minerals with Thyssenkrupp Steel’s innovative technology to drive more sustainable operations, all the while responding to society’s growing expectations for climate-responsible production practices.”

Anglo American

Anglo American has adopted a holistic approach to address the challenges of climate change, building on the commitments set out in its 2018 Sustainable Mining Plan to decarbonise its operations, by shaping a long-term roadmap to also help mitigate the impact of COemissions in its value chain. This includes investing in climate-positive technologies and working closely with steelmakers to support their specific decarbonisation efforts.

Dr Arnd Köfler, chief technology officer of ThyssenKrupp Steel adds: “We want to decarbonise the steel value chain inside and outside our plant boundaries. We are making our own production low-carbon through a combination of direct reduction plants with innovative melters. In addition, we are working with many partners to make steel low-carbon from A to Z. We are therefore very pleased to be working with Anglo American to explore ways in which we can use high-grade iron ore in the production process in the most emission-reducing way possible.”


Thyssenkrupp Steel is a leading manufacturer of high-quality carbon flat steel for a wide range of industries, including automotive, energy generation, appliances and packaging.

Anglo American’s ambition for 50% Scope 3 emissions reduction by 2040

Climate science has set an imperative to decarbonise the global economy as quickly as possible.

Building on the series of environmental and other commitments set out in its 2018 Sustainable Mining Plan, Anglo American set out an ambition in 2021 to reduce its Scope 3 emissions by 50% by 2040, building on a pre-existing commitment to reach operational (i.e., Scope 1 and 2) carbon neutrality by the same year. With the majority of Anglo American’s Scope 3 emissions linked to materials – steelmaking coal and iron ore – sold into the steelmaking industry, the steel value chain is central to the company’s decarbonisation efforts.

Anglo American’s approach includes joining forces with like-minded customers and others with similar ambitions for a lower carbon future. For example, the company has signed agreements with a number of major steelmakers in Europe and Asia to research efficient feed materials suited for use in direct reduced iron (DRI) steelmaking, including iron ore pellets and lump iron ore.

Steel production by DRI is a technically proven production method estimated to be significantly less carbon intensive than the traditional blast furnace and basic oxygen furnace integrated steelmaking process. When using green hydrogen as a reducing agent, the process can be made largely CO2-free.