Rio Tinto, the global leader in iron ore, has collaborated with China Baowu, the largest steel producer in the world, to address the climate impact of their industries. The two companies have signed a memorandum of understanding pledging to lead the way in transforming the highly emissions-intensive steel manufacturing process. The companies will focus on developing low-carbon processes for low-to-medium grade iron ores, which are responsible for the majority of global iron ore supply. The process for extracting lower-grade ores is more energy-intensive, leading to higher emissions. To address this, Rio Tinto and China Baowu will explore the development of feedstock suitable for lower-carbon processes that provide customers with the desired end product without significant emissions. Instead of using coal-fired furnaces, the companies are developing technology that uses gas and hydrogen.