A tweet from Arcelormittal a few days ago

https://twitter.com/ArcelorMittal/status/1040236447784214528?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet

The company involved is LanzaTech

Below is an interesting link to read. Using Carbon to make ethanol and reducing the carbon by 80% as a result.

https://corporate.arcelormittal.com/news-and-media/news/2015/july/13-07-2015

according to this more recent link, the first phase will be finished 2020

https://corporate.arcelormittal.com/news-and-media/news/2018/june/11-06-2018

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Baosteel is also a partner of LanzaTech

http://www.lanzatech.com/lanzatech-and-baosteels-100000-gallonyear-waste-gas-to-ethanol-pre-commercial-facility-exceeds-productivity-expectations-and-hits-major-milestones-in-advance-of-commercialization/

But, here is where it gets even more interesting.

Samancor, from South Africa, one of the world’s largest chrome producers thought, “Hey, I like it. What a great idea for steel Co2 by- product…but, can it be used at a ferrochrome smelter?”

So they are looking into it.. with Lanzatech.

https://www.sahra.org.za/sahris/cases/swayana-ethanol-project

Below is an excellent link to read.

So what is Glencore going to do? Are they going to use something like this down the road, or will they perhaps looks at a licensing deal with KWG to reduce the co2 by using Natural Gas?

Kwg, has a great link to look at below. From what I understand, the Samancor site that Lanzatech is involved with uses the Outokumpu technology. Judging by the chart in Kwg’s link below, the reduction by using KWG’s process results in an approx. 70% reduction in co2 by using  the KWG ,natural gas xps process.

http://kwgresources.com/reducing-energy-consumption-by-alternative-processing-routes-to-produce-ferrochromium-alloys-from-chromite-ore-2/

Glencore has from what I read  five smelters in South Africa. What is the plan?

Here’s an article from a week ago.

https://www.miningmx.com/news/markets/34297-sa-miners-ignore-the-proposed-carbon-tax-at-their-peril-warns-lawyer/

THE South African mining industry cannot continue to “… stick its head in the sand” about a proposed tax on carbon emissions because there will be legislation on greenhouse gas emissions brought into effect from 2020.

That was the warning issued by Garyn Rapson, partner: environmental and natural resources at legal firm Webber Wentzel, in a presentation to a breakfast meeting of the Joburg Indaba, a conference, held in Johannesburg on Thursday.

Speaking on the topic of ‘implications of NEMA (National Environmental Management Act) and other environmental regulations for the mining industry’, Rapson said: “Everybody hopes that the carbon tax will go away. It will not. It cannot.

So what is Glencore going to do??

I looked at the project description for the Samancor , Lanzatech proposal, and two hectares of property is required for the Lanzatech stuff.

So I guess, you have to look at the complete costs of all scenarios.

Does Glencore do the same as Samancor for their smelters? Or do they pay a licensing fee for KWG’s process?

I notice this agreement made last year for LNG

http://www.glencore.com/index/media-and-insights/news/angola-lng-and-glencore-sign-lng-sales-agreement

20 September 2017

Angola LNG Limited ("ALNG") and Glencore Energy UK Limited ("Glencore") have executed a multiyear LNG sales agreement, under which ALNG will deliver LNG cargoes to Glencore at destinations around the world.

Angola LNG Marketing Ltd said: "Following on from the other sales agreements recently announced by ALNG, this is another step in building a strong sales portfolio with some of the most important players in the global LNG market. We look forward to our relationship with Glencore. These sales are all underpinned by the safe and reliable operations at ALNG's plant in Soyo."

It’s all so fascinating, and I guess we wait to see what unfolds.

Arcelormittal is the largest steel maker in the world. Baosteel is now apparently #2.

Yet, it was Baosteel that did the deal with Lanzatech before Arcelormittal.

And even though Arcelormittal signed a deal in 2015 years after Baosteel, Arcelor just started construction of the Ghent, Belgium site ..only 3 months ago…and this site won’t be done until 2020(when the carbon tax kicks in).

It seems to me that Baosteel is the corporate social responsibility leader here.

Since, China is the largest ferrochrome producer in the world, and China was first with employing the Lanzatech product for their steel division, what are they going to do in regards to the chrome smelters to reduce the co2? And not to forget KWG did not file a patent in China.

With Jan 2020 not far away, when the carbon tax kicks in, it will be interesting to see further news coming in regards to deals.