JOHANNESBURG (miningweekly.com) – The decarbonisation journey of the steel industry is continuing to reinforce demand for the higher-grade ores and lump products of the kind produced by South Africa’s Kumba Iron Ore.
These materials improve blast furnace productivity, lower emission intensity, and support the transition towards lower carbon steelmaking pathways, Kumba CEO Mpumi Zikalala reported during the interim results presentation of the Johannesburg Stock Exchange-listed company, covered by Mining Weekly. (Also watch attached Creamer Media video.)
Despite increasing price pressures, decarbonisation policies have strengthened as a result of the implementation of the Carbon Border Adjustment Mechanism (CBAM) framework in Europe. Under CBAM, agglomerated products such as pellets will face an import levy, depending on the quantum of embedded emissions and prevailing carbon prices.
These penalties are likely to trend higher longer term, making lump iron-ore a more attractive alternative in the region.
The potential of lump to replace pellets is significant, given that imported pellets occupy roughly a 35% share in total EU imports.
