Own BHP shares? Here’s why the miner just partnered with one of the world’s biggest steelmakers

two workers in hard hats and high visibility gear give celebratory fist pumps while checking paperwork at a processing site with equipment in the background.two workers in hard hats and high visibility gear give celebratory fist pumps while checking paperwork at a processing site with equipment in the background.

The BHP Group Ltd (ASX:) has signed an agreement with Tata Steel based in India.

In today’s trade, the company’s share price lifted 1.37% to close at $37.11. For perspective, the S&P/ASX 200 Index (ASX: XJO) finished 1.65% higher today.

Let’s take a look at what BHP announced today.

BHP signs deal with Indian company

BHP has signed a deal with the global steel-making company Tata Steel Limited (NSE: TATASTEEL). Australia’s multinational mining giant will work with Tata to reduce carbon emissions from iron and steelmaking technology.

Two major focuses of this deal will be carbon capture during production and the use of biomass as an energy source.

The technologies could reduce emission intensity from steel mills by as much as 30%, BHP said.

Both companies want to collaborate to reduce their carbon footprint and achieve their climate change ambitions.

BHP has a goal of reducing emissions by 30% from 2020 levels by 2030. In 2050, the company plans to hit net zero emissions.

Commenting on the news, BHP chief commercial officer Vandita Pant said:

The partnership with Tata Steel highlights the importance of collaborations in being able to successfully identify and implement emission reduction technologies in steelmaking, including by developing abatements that can apply to the existing blast furnace process to incrementally reduce its carbon emissions intensity.

BHP share price snapshot

The BHP share price has shed 15% in the past year although it’s gained around 0.5% year to date.

In the past month alone, BHP shares have lost more than 12%.

For perspective, the benchmark ASX 200 index has shed nearly 7% in the past year.

The post Own BHP shares? Here’s why the miner just partnered with one of the world’s biggest steelmakers appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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