Vale, one of the world's largest iron ore producers based in Brazil, said on Tuesday it has signed a memorandum of understanding with Jiangsu Shagang Group Co Ltd to pursue opportunities to develop steelmaking solutions focused on reducing carbon dioxide emissions.

The two sides will develop economic feasibility studies on usage of products with lower carbon footprints in the iron-making process, Vale said.

This initiative contributes to achieving Vale's commitment to reduce client and supplier emissions by 15 percent by 2035. The company will further engage with its value chain through partnerships for the development of low-carbon technologies, especially with customers in the steel sector, it said earlier.

Jiangsu Shagang, a Chinese steel producer and service supplier, currently has five production sites, mainly located in Jiangsu, Liaoning and Henan provinces. Its wide range of steel products are exported to more than 100 countries and regions around the world and widely used in infrastructure, manufacturing, high-end equipment and consumption.