Global mining giant BHP and South Korean steelmaker POSCO have announced an agreement to build a demonstration plant for producing "near zero emissions" iron.

The facility will be constructed at POSCO's complex in Pohang, South Korea, and will utilize hydrogen-based reduction technology combined with an electric smelting furnace.

Scheduled to begin operations in early 2028, the plant is designed with an annual production capacity of 300,000 tons. This initiative represents a significant step by both companies to decarbonize the steel value chain, with BHP aiming to secure future demand for its iron ore and POSCO advancing its low-carbon steelmaking technology.