Benzinga | Aug 19, 2021 08:03AM EDT

Ternium And Vale Sign Memorandum Of Understanding To Develop Steelmaking Decarbonization Solutions

Ternium S.A. (NYSE:TX) has signed a memorandum of understanding ("MoU") with Vale S.A. ("Vale") in which both agreed to pursue opportunities to develop steelmaking solutions focused on reducing CO2 emissions.

Ternium and Vale intend to develop economic feasibility studies of potential investments in (i) an iron ore briquetting plant located at Ternium Brasil facility; and (ii) plants to produce metallic products with low carbon footprint, using Tecnored, HYL and other technologies for iron reduction.

This initiative contributes to achieving Vale's commitment to reduce 15% of net Scope 3 emissions by 2035. Additionally, Vale seeks to reduce its absolute Scope 1 and 2 emissions by 33% by 2030 and achieve neutrality by 2050, in line with the Paris Agreement, leading the evolution process towards low carbon mining.

Mr. M?ximo Vedoya, Ternium's Chief Executive Officer and Mr. Eduardo Bartolomeo, Vale's Chief Executive Officer, attended the MoU signing ceremony on August 18th, 2021. As per his speech, Mr. Bartolomeo affirmed "This is an important milestone in our roadmap to provide low carbon solutions to the steel industry and we are glad to engage with Ternium on this journey. We are making progress with our commitment to Society and to the Paris Agreement's targets, supported by innovative technologies, a high-quality, world-class portfolio of iron ore, critical to the low-carbon transition. We are well-positioned to lead the path to reduce Scope 3 emissions as we support the decarbonization of the steelmaking industry through joint initiatives with our clients."

Mr. M?ximo Vedoya, Ternium's Chief Executive Officer said: "This is an important step in our decarbonization strategy as it contributes to achieving Ternium's commitment to reduce by 20% its CO2 emission intensity by 2030. Vale is a key supplier in our value chain, and they share our commitment to preserving the environment. I believe we will have many opportunities to develop joint initiatives to continue decarbonizing our operations in the future. Carbon neutrality is a goal that can only be achieved if all parts of society work together. As Latin America's leading flat steel producer, we are going to do our part in this endeavor."