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[Ferro-Alloys.com] Vale S A : and ROGESA sign pellet supply agreement that points to the transformation of the steel industry

Environment, Iron Ore

Vale and ROGESA sign pellet supply agreement that points to the transformation of the steel industry

Contract provides for the supply of blast furnace pellets in the first few years and direct reduction pellets from 2028 onwards

Vale and Roheisengesellschaft Saar mbH (ROGESA), a joint subsidiary of Dillinger and Saarstahl AG, recently concluded a multi-year supply agreement for pellets that represents a landmark in the quest to decarbonize steelmaking. The agreement calls for the supply of blast furnace pellets from 2025 to 2027 and a flexible transition to direct reduction pellets starting in 2028, following the commissioning of ROGESA's direct reduction plant at the Dillingen site.

In future, Saarland's steel industry will use the direct reduction plant and its electric arc furnaces to produce environmentally friendly steel, using hydrogen to convert the iron ore into hot-briquetted iron (HBI) instead of using coking coal, as has been the case to date.

"We are very pleased to enter into this agreement with ROGESA, our partner since the mid-1970s and of the most relevant steel producers in Europe. Together, we are appointing to the future of steelmaking. Direct reduction pellets, as well as our groundbreaking briquettes, will be key for the production of steel in electric arc furnaces, which will significantly reduce carbon emissions from the steel industry", said Bruno Pina, Director of Sales at Vale.

"For the upcoming transformation, it was important for ROGESA to secure high-quality input materials for the blast furnaces and the DRI plant with Vale, the world's largest producer of iron ore pellets," said Stefan Rauber, Chairman of the Management Board of SHS - Stahl-Holding-Saar and Chairman of the Board of Management of Dillinger and Saarstahl.

Frank Becker, Managing Director of ROGESA and ZKS, added: "We are excited to further intensify our long-standing, successful collaboration with Vale. With the new supply agreement, we are also ideally equipped for the next big steps on the road to carbon-neutral steel production."

Vale has established the commitment to reduce 15% of net scope 3 emissions, related to its value chain, by 2035. The company also seeks to reduce its absolute scope 1 and 2 emissions by 33% by 2030 and achieve net zero by 2050, in line with the Paris Agreement, leading the way to sustainable mining.

About ROGESA

ROGESA Roheisengesellschaft Saar mbh, Dillingen, is a joint subsidiary of Aktien-Gesellschaft der Dillinger Hüttenwerke (Dillinger), Dillingen, and Saarstahl AG, Völklingen, with each directly or indirectly holding 50% of the company's shares. ROGESA was founded in 1981 and currently produces using two blast furnaces. The hot metal produced supplies the steel plants of Dillinger and Saarstahl. The steel produced is used in the construction of projects worldwide, including in the development of renewable energies.

• [Editor:tianyawei]