• JFE Steel Corporation

TOKYO – The Clean Development Mechanism (CDM) project** that JFE Steel Corporation has been pursuing with Philippine Sinter Corporation* (PSC) received formal approval from the United Nations CDM Council on May 7. The project applied for UN approval in March this year after receiving approvals from both the Japanese and Philippine governments.

PSC, a subsidiary of JFE Steel based on the island of Mindanao, produces sintered iron ore for use in blast furnaces. Under the project, the sintering process will recover waste heat and make effective use of it in generating electricity, reducing the carbon dioxide emissions from fossil fuels that would be consumed in conventional thermoelectric power plants. Plans anticipate startup of the waste heat recovery and power generation facility in April 2008. An estimated 62,000 tons of carbon dioxide can be saved each year.

The JFE Group considers improvement of the global environment to be one of its most important management tasks and is leveraging its technology and know-how to achieve global-scale reductions in carbon dioxide through a variety of applications. This project is a part of these larger efforts and one example of how the JFE Group’s facilities and operational technologies can be used to benefit the environment.

JFE Steel will continue to contribute to global-scale reductions of carbon dioxide by making use of the energy-conservation and environmental technologies of the JFE Group from long-term, international perspectives.

* Philippine Sinter Corporation

Wholly owned subsidiary of JFE Steel. Production capacity of sintered ore amounts to 5.5 million tons/year.

**  Clean Development Mechanism (CDM)

Introduced in the Kyoto Protocol as a supplementary method making use of market mechanisms. When enterprises in developed countries furnish funding and technology to enterprises in developing countries, any consequent reductions in carbon dioxide can be counted towards reductions in the developed countries (enterprises).