NEXI Signs MOU with ITOCHU Corporation and CSN Mineração S.A. for Decarbonization of Steel Industry
Nippon Export and Investment Insurance(NEXI)
Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has signed Memorandum of Understanding (MOU) with ITOCHU Corporation (ITOCHU) and CSN Mineração S.A. (CSN Mineração), an iron ore production and sales subsidiary of a Brazilian steel producer Companhia Siderúrgica Nacional.
The MOU was announced at the Japan-Brazil Business Forum held on May 4 in Sao Paulo, Federative Republic of Brazil, in the presence of Prime Minister Kishida and Brazilian Vice President Alckimin, with representatives from ITOCHU and CSN Mineraçao and Atsuo Kuroda, Chairman and CEO of NEXI.
The MOU is for the stable production and supply to Japanese companies of high-grade iron ore (pellet feed) produced by CSN Mineração’s pellet feed production plant, for which NEXI decided to provide a loan insurance in March 20231, as well as for further cooperation between the three parties for the decarbonization of the steelmaking sector. Pellet feed is an essential raw material for low-carbon steelmaking in a direct reduction method using an electric furnace, which reduces CO2 emission compared to using a blast furnace. NEXI's financial support for this project will contribute to the stable supply to Japanese companies of mineral resources essential for steel production and the realization of carbon neutrality in the Japanese steel industry.
（From left: Enéas Garcia Diniz, Superintendent Officer of CSN Mineração S.A., Atsuo Kuroda, Chairman and CEO of NEXI, Jun Inomata, Executive Officer, President, Metals & Minerals Company of ITOCHU Corporation, Fumio Kishida, Prime Minister of Japan, Geraldo José Rodrigues Alckmin Filho, Vice President of Federative Republic of Brazil）
As a governmental financial institution of Japan, NEXI will actively support efforts that contribute to securing a steady supply of resources and energy to Japan, and the efforts by Japanese companies to achieve carbon neutrality.
Contact: Natural Resources Group, Structured and Trade Finance Insurance Department
Tel: +81-(0)3-3512-7670
1 NEXI News Release, March 31, 2023 Federative Republic of Brazil / Loan Insurance for Pellet Feed Plant Construction Project (nexi.go.jp)