SINGAPORE (Reuters) -Australia's BHP Group has signed contracts with China's COSCO Shipping for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers, the mining giant said on Wednesday.

The two vessels are expected to be delivered from 2028 and will be charted for five years. They will mainly be used to transport iron ore from Western Australia to Northeast Asia.

These vessels can reduce greenhouse gas emissions by at least 50 per cent and up to 95 per cent on a per-voyage basis compared to a conventionally-fuelled voyage, if they run on lower or low-to-zero GHG emissions ammonia, according to BHP.

The mining giant previously told Reuters that it plans to receive its first ammonia-fuelled bulk carrier from 2026 as part of the company's plans to cut shipping emissions.

Ammonia is among several alternative fuels that shippers are exploring to cut carbon emissions, though adoption will take time to scale up.

(Reporting by Jeslyn Lerh; Editing by Mrigank Dhaniwala)