In the afternoon of November 6, Chen Delong, Chairman of China Baowu, and M i ke Henr y, the new CEO of BHP Billiton, had a video exchange on promoting cooperation on sustainable development of the iron ore business, carbon reduction and climate change, and further strengthening the cooperation between the two parties. The two sides exchanged views on topics such as cooperation in low carbon metallurgy and other fields. At the meeting, China Baowu and BHP Billiton Video signed a Memorandum of Understanding on Climate Change Cooperation, Hou Angui, Deputy General Manager of China Baowu, and Va ndi t aPa nt Pan Wenyi, Chief Commercial Officer of BHP Billiton, signed on behalf of both parties.

China Baowu and BHP Billiton have maintained a long-standing and good cooperative relationship, and both parties will further strengthen strategic cooperation based on long-term cooperation such as iron ore, and actively innovate and deepen cooperation in areas such as RMB settlement, carbon reduction and climate change, and blockchain.

BHP Billiton has achieved good operating results this year thanks to the rapid recovery of the Chinese economy and the demand for iron ore in the Chinese market," said Mr. Han Murui. Looking ahead, BHP Billiton will continue to expand its iron ore business, improve efficiency and meet the resource needs of downstream users.

Carbon reduction is one of the major challenges for BHP Billiton's future development. The signing of a Memorandum of Understanding (MOU) with China Baowu on cooperation to address climate change will be good news for the whole industry and the world. BHP Billiton is willing to work with Baowu to develop new carbon reduction technologies and pathways for the steel industry.

Chen De Rong congratulated Han Murui on his appointment as CEO of BHP Billiton. He said that under the strong leadership of the Chinese government and the active cooperation of the general public, China has achieved a major victory in the fight against epidemic and the economy has rapidly recovered and stabilized.

Under the country's macro-control, through new infrastructure, double cycle strategy and other pull, China's economy is expected to continue to maintain strong recovery growth, China's steel industry will also develop smoothly and rapidly, the demand for iron ore will maintain growth, which is significant good news for BHP Billiton. However, the current high mineral prices make the distribution of benefits between steel enterprises and the upstream supply chain very unbalanced. We hope that both parties will deepen cooperation to make future cooperation more sustainable and healthier development.

During the general debate of the 75th UN General Assembly, President Xi Jinping solemnly announced that China's carbon dioxide emissions would peak by 2030 and strive to achieve carbon neutrality by 2060. In this regard, China Baowu is actively promoting the industrialization of relevant low-carbon metallurgical technology testing and popularization of application, to achieve carbon emission reduction and carbon neutrality demonstration leadership. It is believed that through the joint efforts of the upstream and downstream industry chain, we will definitely make our own contribution to the low-carbon emission reduction, which is a common issue facing all mankind.

Key elements of the memorandum of understanding on climate change cooperation

China Baowu and BHP Billiton will develop a comprehensive long-term strategic cooperation to jointly address climate change. The two parties will focus on smart carbon use and direct carbon avoidance in ironmaking processes, carbon dioxide capture and utilization and storage, and knowledge sharing for the industry and the world for an initial period of five years.

According to the agreement, BHP Billiton plans to invest US$35 million in the next five years to cooperate with China Baowu in research and development of low carbon metallurgy related technologies, construction and operation of demonstration projects and knowledge sharing. At the same time, the China Baowu-BHP Billiton Low Carbon Knowledge Sharing Center will be established under the framework of the China Baowu Low Carbon Metallurgy Innovation Center. The center will be built as a comprehensive and open platform to actively share relevant knowledge and organize technical exchange in the steel industry and across industries on the basis of cooperation and exchange of technical personnel from both sides.