Mining giant Rio Tinto has signed a joint development agreement (JDA) with Australian company Calix to support the construction of a demonstration plant for steel production using Zesty technology in Western Australia. This is stated in a Rio Tinto press release.
This step allows iron ore from the Pilbara region to be used for such processes. Zesty technology is compatible with lower-grade raw materials and uses a combination of electric heating and hydrogen reduction to produce green iron and ultimately green steel.
Rio Tinto is investing more than AUD 35 million ($22 million) depending on the project stages to help Calix build a Zesty Green Iron demonstration plant. Calix also has a grant from the Australian Renewable Energy Agency (ARENA) of AUD 44.9 million (subject to certain conditions).
Under the terms of the agreement, Rio Tinto will support the Zesty project to reach a final investment decision by providing technical support, engineering services, and advocacy.
Upon reaching such a decision and successful construction of the facility, Rio Tinto will supply up to 10,000 tons of various Pilbara iron ores for use during the plant’s commissioning and initial testing phase, as well as to familiarize potential customers with the further use of the Zesty product.
If approved, the demonstration plant will be built on a site in Quinane. Previously, this site was intended for Rio Tinto’s previously announced BioIron research center and associated pilot plant, but the company is adjusting the timing of this program. As noted, the current design of the BioIron furnace requires further development to minimize technical risks and optimize performance. However, the company continues to invest in the long-term potential of this initiative, with research and development taking place in collaboration with the University of Nottingham and Metso.
The partnership with Calix allows Rio Tinto to use a non-exclusive global and perpetual license agreement for the potential commercial use of Zesty technology, sublicense it to its affiliates and customers, and act as a non-exclusive global marketing agent.
Rio Tinto and its partners are investing $733 million in the development of ore mining in Pilbara. The project will maintain the West Angelas hub’s capacity at 35 million tons per year and create more than 1,500 jobs.