MAEGMA Minerals, part of Malaysia's Melewar Group, has signed an agreement with Primetals Technologies to construct a 2 million tons per annum hot briquetted iron (HBI) plant in Perak, Malaysia.

Scheduled to start operations in 2029, the plant, built with Midrex Technologies, will meet growing demand for high-quality HBI in Southeast Asia.

The plant will utilize MIDREX Flex technology, capable of operating with varying natural gas and hydrogen ratios, including up to 100% hydrogen. Initially, a mixture of the two will reduce carbon emissions by over 50% compared to traditional blast furnace production.

The facility will feature hydrogen-ready equipment and pipelines, as well as other systems for automation, process optimization, and digitalization.

Powered by local natural gas and green hydrogen from renewable sources and nearby raw materials, the plant aims for significant transportation cost reductions and carbon footprint improvements.