Tag Archives: Steel Mills & Foundries (TRBC level 5)

ArcelorMittal is looking for partners, subsidies for cleaner steelmaking in Germany | Instant News


(Adding the DRI plant in Bremen in paragraphs 7 and 9)

FRANKFURT (Reuters) – ArcelorMittal is seeking partners and public funding to curb carbon emissions from steelmaking at its German operation where plans for alternative technologies are far ahead, said the head of Europe’s largest steel producer.

European steelmakers are under pressure to reduce carbon emissions while maintaining profitability in a market where there is fierce competition, particularly from China, while pollution permit fees are soaring higher.[L8N2L94CD]

“We are looking for partners from the energy sector to generate renewable energy,” Geert Van Poelvoorde, the new chief executive of ArcelorMittal Europe, told Reuters in an interview.

“We want to replace carbon and increase the use of scrap metal.”

The company estimates it will cost between 1 and 1.5 billion euros ($ 1.18-1.77 billion) to transform the Bremen and Eisenhuettenstadt plants, said Van Poelvoorde.

The company will close blast furnaces at each of the two factories and build electric arc furnaces for scrap smelting.

It will build iron ore direct reduction (DRI) plants in Bremen and Eisenhuettenstadt, which can run on gas as a transition fuel initially, and later on hydrogen, which is considered carbon neutral when it comes from renewable electricity.

The DRI process cuts CO2 versus the integrated blast furnace route by two-thirds.

The Bremen and Eisenhuettenstadt plans “have the potential to save five million tonnes of CO2 per year. That’s important, “said Van Poelvoorde.

Separately, ArcelorMittal’s so-called “smart carbon” will use carbon recycled from bioenergy, green electricity, and carbon capture and use.

Meanwhile in France, the French Finance Minister said during a visit to the Fos-sur-Mer ArcelorMittal plant in southern France that ArcelorMittal is investing 63 million euros to cut the plant’s carbon emissions, which will include a 15 million euro subsidy from the French state.

Van Poelvoorde said the positive results of applying for subsidies of up to 60% of investment at the German and EU levels were critical to Germany’s plans which will be completed possibly early next year and will be implemented between 2025 and 2030.

The EU needs to impose border protection tariffs on imported steel from countries with heavy carbon loads, he said.

Consumers should also be prepared to accept higher steel costs, around 60%, for cleaner manufacturing processes, he said.

($ 1 = 0.8480 euros)

Reporting by Tom Kaeckenhoff, Vera Eckert; additional reporting by Thomas Leigh, editing by Maria Sheahan and Elaine Hardcastle

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UPDATE 1-Contractor asked Australia to review asset sale to Tianqi Lithium China | Instant News


(Change date, add timeline, add contractor’s comments)

MELBOURNE March 11 (Reuters) – An Australian mining services contractor locked in a legal dispute with China’s Tianqi Lithium Corp over a failed payment has asked the Foreign Investment Review Agency to examine the related sale, a company director said on Thursday.

Perth-based MSP Engineering has asked the FIRB to review part of the sale of Tianqi’s Australian lithium business to nickel miner IGO after Tianqi refused to pay him to build a battery-grade lithium processing plant in Western Australia.

This week, the Western Australian Supreme Court ruled that Tianqi, one of the world’s largest producers of the lithium chemical used in electric vehicle batteries, must pay A $ 38.9 million ($ 30 million) in arrears. Tianqi said he would appeal.

The FIRB application comes at a time when trade tensions between China and Australia are rising.

“If we are not completed as part of that sale, then we don’t think it represents the right behavior by foreign investors,” director Craig Burton told Reuters.

MSP has had to stop other lines of business from paying its contractors and subcontractors for months of work and has reduced its staff to four out of 400 employees pending payment, he said.

“This has a bad impact on our business. We just want Tianqi to do the right thing and pay the money spent on the project. “

Tianqi said in a filing on Wednesday that it would challenge the verdict that has given up to March 15 to pay money, including principal and interest. His counter claims included that the project was over budget.

The FIRB did not have any comments yet. The IGO declined to comment.

Tianqi’s assets include a 51% stake in the Greenbushes lithium mine and a 100% stake in the Kwinana lithium plant.

The facility was heralded as the largest of its kind before the first phase commissioning of 24,000 tonnes was halted a year ago as Tianqi flagged liquidity problems due to plunging lithium prices.

The debt-laden company in December secured a strategic investor in the form of Australian nickel miner IGO Ltd for 49% of its business, paving the way for a $ 3 billion loan extension.

Tianqi warned that filing the verdict could adversely affect the liquidity and factory of Kwinana.

The facility is likely to start operating in the fourth quarter of 2021, Daiwa Capital Markets said in a January note, citing Tianqi management at a conference.

Tianqi did not immediately respond to a request for comment about the intended launch date.

$ 1 = 1.2932 Australian dollars Report by Tom Daly and Melanie Burton at MELBOURNE; Edited by Mark Potter and Stephen Coates

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Italy’s Eni pledged to be carbon neutral by 2050 in its latest green push | Instant News


MILAN (Reuters) – Italian energy group Eni on Friday stepped up its ambition to reduce greenhouse gas emissions, pledging to become clean carbon neutral by 2050, as it seeks to keep pace with the industry’s pace under pressure from investors to go green.

FILE PHOTO: Italian energy company Eni logo is seen at a gas station in Rome, Italy August 16, 2018. REUTERS / Max Rossi / File Photo

Like his peers, Eni is stepping up plans to transition to cleaner fuels as governments around the world scale up green deals to tackle the climate crisis and power economies.

“We are committed to the full decarbonization of all our products and processes by 2050,” said Chief Executive Claudio Descalzi. “Our plans are concrete, detailed, economically sustainable, and technologically proven.”

Graph: Strategic Presentation of ENI 2021-2024 –

Eni shares were speeding up after the plan was launched, up 2.3% at 1324 GMT versus a flat European oil and gas index.

In an update to the cleanup efforts announced last year, Eni said it would cut absolute emissions by 25% by 2030 from 2018 levels and 65% by 2040.

Eni’s plans come just days after newly appointed Italian Prime Minister Mario Draghi has put climate change at the core of his plans for Italy and said his government intends to increase renewable energy and green hydrogen production.

Eni, which derives most of its revenue from oil and gas, said the goal of decarbonization by 2050 will be achieved by increasing yields from bio refineries, increasing renewable capacity, deforestation initiatives, carbon capture and other green projects.

“These are targets, not aspirations,” Descalzi told analysts during the plan presentation, adding that management salaries would be tied to it.

The world’s top oil and gas companies have set targets for reducing greenhouse gas emissions from their operations and the use of the products they sell.

Royal Dutch Shell pledged to eliminate net carbon emissions by 2050, raising its ambition from its previous target, as its oil production declined from its 2019 peak, while Total changed its brand as part of a push to diversify and grow electricity and renewable energy production.

Eni said he would combine his renewable and retail businesses to grow his customer base in synergy with green ambitions.

Revealing the short-term target until 2024, Eni said production would increase by 4% per year, with upstream spending of around 4.5 billion euros per year.

Eni plans to spend a total of 7 billion euros per year over the next four years, with more than 20% of that allocated to green projects and retail and renewable businesses combined.

Eni said it would once again base its dividend policy on Brent prices, saying a base price of 0.36 euros per share would start from an annual Brent scenario of $ 43 per barrel, two dollars lower than the previous level.

The company will buy back shares for 300 million euros if Brent reaches $ 56 per barrel, and more if the price rises.

Earlier on Friday, Eni posted a better-than-expected net profit adjusted for the fourth quarter as oil prices strengthened after what Descalzi said was “a year unlike any other in the history of the energy industry” sending full-year profits tumbling.

“We will never forget this extraordinary year marked by the most unexpected and disturbing crisis we have ever seen,” said Descalzi.

Graph: Eni vs European Oil and Gas Sector –

Additional reporting by Stefano Bernabei; Edited by Edmund Blair and David Evans

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2-Eni Italia UPDATE beat expectations in last quarter after ‘year like no other’ | Instant News


(Recast, add comments, details, share, graphics)

MILAN, Feb 19 (Reuters) – Italian energy group Eni’s fortunes picked up in the last quarter of this year as firmer oil prices after “a year like no other” saw full-year profits fall.

Adjusted net income for the fourth quarter was 0.66 billion euros ($ 798 million), down 88% on the year but beating analyst expectations for a 0.04 billion euro loss.

But for the full year, it reported a loss of 742 million euros compared to a gain of 2.876 billion euros in 2019 after what Eni Chief Executive Claudio Descalzi said was “a year unlike any other in the history of the energy industry”.

The unprecedented drop in demand triggered by the COVID-19 pandemic saw big European rivals Shell and BP as well as big US companies Exxon Mobil and Chevron report heavy losses for the year.

Eni’s shares fell sharply last year, hitting their lowest level in a quarter century as the health pandemic rocked oil markets.

In the fourth quarter production fell 11% to 1,713 million barrels of oil equivalent per day but the company said full-year production was on target.

Like its competitors, Eni has cut its investments to offset the impact of the pandemic and spent 35% less last year at 5 billion euros.

Adjusted cash flow for the year fell to 6.7 billion euros compared with guidelines for 11.5 billion euros on Brent oil prices of $ 60 per barrel.

“By taking advantage of the actions we took, our adjusted cash flow for 2020 … was able to finance our capex, with a surplus of 1.7 billion,” said Descalzi.

The companies, which said they were well-equipped to deal with this year’s uncertain trading environment with liquidity of around 20.4 billion euros, confirmed a 2020 dividend of 0.36 euros per share.

In a note, Royal Bank of Canada said Eni remains one of the more leveraged names among integrated oil companies.

“We see Eni’s aggressive strategy around the energy transition as posing a risk to shareholders from time to time,” he said.

Eni, like other European peers, is cleaning up his business as investors increase pressure on the oil and gas sector to fight climate change.

It will release its new business plan on Friday.

By 1019 GMT Eni’s shares were down 1.1%, while the European oil and gas index was down 0.5%.

($ 1 = 0.8271 euro)

Additional reporting by Stefano Bernabei; Edited by Edmund Blair and David Evans

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Vale Brasil will launch a WeChat platform for spot sales of iron ore in yuan | Instant News


November 9 (Reuters) – Brazilian miner Vale SA said on Monday that it plans to launch an iron ore spot trading platform on the China WeChat mobile app with Beijing Iron Ore Trading Center Corporation (COREX) in early 2021 to facilitate transactions denominated in yuan.

Vale said it would be able to streamline and speed up spot sales of iron ore to China through the WeChat mini program, and that the two companies had signed a memorandum of understanding during the China International Import Expo currently taking place in Shanghai.

China, the world’s largest steel producer, consumes more than one billion tonnes of iron ore per year, a key ingredient in steelmaking. Rio Tinto, BHP Group and Vale have all started selling iron ore to Chinese factories in yuan as China pushes to increase its influence on prices.

Rio Tinto launched a WeChat program for left-sided spot iron ore trading in March.

Operated by Tencent Holdings Ltd, WeChat started out as a messaging service and now has more than one billion users worldwide. It’s ubiquitous in China, where it’s used for everything from paying utility bills to ordering pizza.

Vale’s press office in China said it was currently unable to reveal more details about how the program would work or what information clients could obtain from it. (Reporting by Min Zhang and Tom Daly; Editing by Susan Fenton)

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