South African Ports Quickly Recover After Weather Disruptions; Iron Ore Supply Remains Resilient
Since early July, the main iron ore export port in South Africa, Saldanha Bay, experienced disruptions due to severe cyclonic storm weather from July 7 to July 11. Consequently, global iron ore shipment data indicated that South Africa’s weekly iron ore shipments fell by 83.5% to 139,000 tonnes as of July 14.
However, as weather conditions improved, iron ore shipments from Saldanha Bay have gradually resumed. Recent data shows that as of July 21, South Africa’s weekly iron ore shipments had quickly rebounded to over 1 million tonnes. Meanwhile, the average weekly shipment volume for the year is 1.255 million tonnes, up 15.2% from last year. Therefore, the impact of the brief adverse weather on South Africa’s annual iron ore supply growth is negligible.
Anglo American Sells Stake in Onslow Iron Ore Project in Australia
On July 22, it was reported that mining giant Anglo American had reached an agreement with Australian Taurus Funds Management to sell the rights to two assets for $195 million. This includes a stake in its subsidiary De Beers Group’s Onslow iron ore project in the Pilbara region of Australia and the related gold and copper rights to the Caspiche gold mine project in northern Chile. The transaction is expected to be completed in the fourth quarter of 2024.
The Onslow iron ore project is located in the Ken’s Bore mining area of Pilbara, 150 kilometers from the iron ore transport port of Ashburton. The project, with an investment scale of $3 billion and an annual production capacity of approximately 35 million tonnes, delivered its first batch of iron ore in May this year.
Tosyali Steel to Establish World’s Largest DRI Plant in Africa
Turkish steel manufacturer Tosyali recently announced on its website that it had signed an agreement with Libya’s SULB to build a large direct reduction iron (DRI) production base in Benghazi, a northern port city in Libya. According to the agreement, the two companies have established a new company named Tosyali-SULB in Benghazi to operate this project.
This DRI production base will have a combined annual capacity of 8.1 million tonnes, utilizing MIDREX Flexi DRI technology and clean energy hydrogen for production. It is expected to become one of the world’s leading green steel production bases. The first phase of investment construction is about to begin, which will include a plant with an annual capacity of 2.7 million tonnes to provide hot briquetted iron (HBI) to nearby regions and Europe. Once completed, Tosyali may become one of the largest HBI suppliers on the international market.
ArcelorMittal Mexico Ends Strike at Steel Plant
On July 23, it was reported that ArcelorMittal Mexico, after 55 days of striking, reached an agreement with the Mexican union on July 19 to end the strike. As of July 19, the strike had impacted approximately 500,000 tonnes of crude steel production.
ArcelorMittal’s steel plant in Mexico is located in Lázaro Cárdenas, Michoacán, with an annual crude steel production capacity of about 6.4 million tonnes.
Previously, on May 24, the Mexican miners’ union blocked the plant due to issues with wage distribution to workers, which escalated to a workers’ strike five days later. On July 19, both parties reached an agreement, with ArcelorMittal agreeing to pay workers approximately $3,354 in compensation and distribute food vouchers to cover lost wages during the strike, as well as an 8% wage increase effective from May 1.
POSCO to Build Hydrogen Reduction Steel Plant in South Korea
South Korea’s largest steel producer, POSCO, announced plans to establish a hydrogen reduction (HyREX) steel plant in Pohang, with construction set to begin in the first quarter of 2025 and completion expected by 2027. The plant is expected to produce 36 tonnes of direct reduced iron per hour.
POSCO successfully produced direct reduced iron using HyREX technology on April 15 this year. The pilot plant’s current capacity can produce 24 tonnes of direct reduced iron per day, with carbon emissions of 400 kilograms per tonne, significantly lower than emissions from using fossil fuels like coke and natural gas. Once hydrogen production uses renewable energy, the pilot plant may achieve “zero carbon emissions.” POSCO aims to commercialize HyREX technology by 2030, increase direct reduced iron production capacity to 2.5 million tonnes per year by 2040, and fully apply HyREX hydrogen reduction ironmaking technology to production by 2050.
Additionally, Saudi Green Hydrogen Company ASWA has signed an agreement with POSCO to support its decarbonization goals in steelmaking, power generation, and other industries.