UK firm signs deal with Mitsui to make iron ore pellets from Pilbara material

LONDON, Feb 2 (Reuters) - British ⁠firm Binding ‌Solutions has signed an agreement with ⁠a unit of Japanese trading house Mitsui & Co to turn iron ore in Western ‍Australia's huge Pilbara region into low-carbon pellets, Binding Solutions said on Monday.

The privately held ‍company says its technology cuts energy and CO2 emissions in the production of ⁠iron ore pellets compared to the established method.

Binding Solutions has signed a memorandum of understanding with Mitsui Iron Ore Development over the production of cold agglomerated pellets, ​a statement said, which use less energy to make than conventional pellets.

Its CEO Jon Stewart said the progress it had already made working with MIOD to develop the pellets from Pilbara, the world's largest ‍iron ore producing region, creates "a significant additional market opportunity" for the firm.

Under ‌the preliminary agreement, Binding Solutions will use its technology to turn lower-grade "fines" iron ore material from the Pilbara ‌into pellets, which command a price premium.

Mitsui has investments in Pilbara iron ore operations with major producers BHP and Rio Tinto.

Binding Solutions has ‌had industrial trials with British Steel and with Germany's Salzgitter, and is seeking to build ​an industrial-scale plant.

Iron ore fines have to go through a process called sintering, which uses very high temperatures and is usually highly polluting, before they can ⁠be used in a blast furnace.

Pellets are ‍also in demand because they can be used in electric arc furnaces, which many steelmakers are switching ​to in a drive to cut carbon emissions.

In February ⁠last year, Mitsui said it would acquire a 40% stake in the Rio Tinto-operated Rhodes Ridge iron ore project in Western Australia for $5.34 billion. (Reporting by Eric Onstad; Editing by Jan Harvey)

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