ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter "ITOCHU") announced today that it began the full-scale operation of GE Digital’s operation and asset management software at the iron mine Casa de Pedra ("CdP Mine"). ITOCHU and the CSN Group, a major Brazilian steel producer, have been proceeding with collaboration for decarbonization and digitalization related to metal and mineral resources at the CdP Mine, in which the two companies hold joint interest, as well as at CSN’s steel plants.^*1

In addition, ITOCHU and the CSN Group have agreed to collaborate on decarbonization with the Shell, a major oil and gas company. The three companies plan to collaborate toward the realization of decarbonization of the CSN Group mainly at the CdP Mine.

◆Reducing costs and improving the iron ore recovery rate through the full-scale operation of GE Digital's software solutions
The digital software solutions of GE Digital, which have a proven track records in the digitalization of operations in the metal and mineral resources industries, power generation and aviation, have entered full-scale operation. ITOCHU and CSN agreed to install the solutions at the CdP mine and have been preparing for the installation since 2021.
Before the solution came into operation, most asset management such as the control and maintenance of equipment including beneficiation plants and dump trucks at the CdP Mine was done manually, and was dependent on the experience and knowledge of individual people. The installation of this solution will enable the timely control of operations and maintenance management through the instant analysis of operational data using the results of the advanced analysis of historical data. The introduction of this GE Digital software is expected to substantially improve the annual profit of the CdP Min by reducing costs and improving the iron ore recovery rate. In the future, the two companies will have wide-ranging discussions not only for CdP Mine operations, but also for digitization of other areas such as data utilization and optimization of port operations for shipping iron ore, and decarbonization by emission management.
In the future, ITOCHU and CSN will roll out the solutions at other mines based on the expertise developed at the CdP Mine.

◆A memorandum of understanding regarding decarbonization signed with Shell, with the introduction of CCUS and electronic heavy mining vehicles under consideration
ITOCHU and the CSN Group have signed a memorandum of understanding with Shell toward the introduction of Shell’s decarbonization technology, aiming for the decarbonization of the CSN Group. Shell is promoting decarbonization business not only in the oil and gas industry but also in a wide range of industries, including the metal and mineral resources industry. ITOCHU, CSN and Shell plan to proceed with discussions regarding the introduction of CCUS, the electrification of heavy duty machinery, the utilization of carbon credits, and the introduction of renewable energy in CSN’s operations, mainly in the CdP Mine and CSN’s steel plants.

ITOCHU positions "Strengthening Contributions to and Initiatives for the SDGs" as one of its basic policies in the Brand New Deal 2023 medium-term management plan. Centering on the mines where it has interests, it will contribute to the improvement of operational efficiency in the metal and mineral resource industry as a whole, the improvement of safety, and the achievement of the SDGs.