ROGESA and Brazilian iron ore producer Vale sign multi-year supply agreement for blast furnace pellets and direct reduction pellets

ROGESA Roheisengesellschaft Saar mbH, a joint subsidiary of Dillinger and Saarstahl AG, recently concluded a multi-year supply agreement for blast furnace pellets and direct reduction pellets with Brazilian iron ore producer Vale. In doing so, the two companies are continuing their long-standing cooperation, which began in the mid-1970s.

The agreement calls for a flexible transition to direct reduction pellets starting in 2028, following the commissioning of the direct reduction plant at the Dillingen site. In future, Saarland’s steel industry will use the direct reduction plant and its electric arc furnaces to produce environmentally friendly steel, using hydrogen to convert the iron ore into direct reduced iron (DRI) instead of using coking coal, as has been the case to date.

“For the upcoming transformation, it was important for ROGESA to secure high-quality input materials for the blast furnaces and the DRI plant with Vale, the world’s largest producer of iron ore pellets,” said Stefan Rauber, Chairman of the Management Board of SHS – Stahl-Holding-Saar and Chairman of the Board of Management of Dillinger and Saarstahl.

Frank Becker, Managing Director of ROGESA and ZKS, added: “We are excited to further intensify our long-standing, successful collaboration with Vale. With the new supply agreement, we are also ideally equipped for the next big steps on the road to carbon-neutral steel production.”

“The contracts with Vale also offer us planning security due to their duration, which allows us to approach the transformation proactively and responsibly,” said Markus Lauer, Board member responsible for finance and procurement at Dillinger and Saarstahl.

“We are very pleased to enter into this agreement with ROGESA, our partner since the mid-1970s and of the most relevant steel producers in Europe. Together, we are appointing to the future of steelmaking. Direct reduction pellets, as well as our groundbreaking briquettes, will be key for the production of steel in electric arc furnaces, which will significantly reduce carbon emissions from the steel industry”, said Bruno Pina, Director of Sales at Vale.