Rio Tinto Group (ASX:RIO) entered into a cooperation agreement with Mitsubishi, Mitsubishi's UK-based group company Primetals Technologies, and steel and technology group voestalpine to develop a prototype plant for net-zero carbon dioxide ironmaking in Austria, according to a Tuesday statement by the mining giant.

The plant, to be located at voestalpine's Linz site in Austria, is set to start operations by mid-2027 and will use hydrogen-based direct reduction technology from Primetals, Rio Tinto said.

The company will provide 70% of the iron ore for the plant, per the statement.

The initiative is backed by funding from the Austrian government and the European Union.