Western Australia will be home to the nation’s largest ironmaking electric smelting furnace, with the NeoSmelt consortium announcing Kwinana as the preferred location for its pilot plant – backed by a major WA Government investment.
The project will position WA as a world-leader in low-emissions iron ore processing, as part of the WA Government’s plan to create the jobs of the future and set up WA’s economy for the long term.
The NeoSmelt project is a collaboration between BlueScope, Rio Tinto and BHP – Australia’s largest steelmaker and two largest iron ore producers – to test the technology to produce iron without metallurgical coal and slash emissions from the steelmaking process.
It will take iron ore from the Pilbara and use renewable energy to produce molten iron, which is used to produce steel.
Technology tested at the NeoSmelt pilot plant represents one of the strongest prospective pathways for decarbonised processing Pilbara iron ore – putting the world on the pathway to producing near-zero emission steel.
The Cook Labor Government will invest $75 million towards the project, including for project infrastructure in the Kwinana industrial area.
The decision to locate the project in Kwinana follows extensive assessment of options around Australia, and recognised Kwinana’s important role as one of the nation’s premier industrial areas for green industries.
The NeoSmelt parties have also announced Woodside Energy will join the consortium as an equal equity participant and energy supplier, subject to finalising commercial arrangements.
Pre-feasibility works are expected to conclude in March next year, with a final investment decision in 2026 and the plant potentially commissioned in 2028.
WA is the world’s largest single exporter of iron ore into the global market. With the steel industry generating about 8 per cent of global carbon emissions, WA can play a leading role in reducing emissions from steel.
BlueScope Chief Executive Australia Tania Archibald said,”This marks a significant milestone in what is truly a unique and transformative project to help decarbonise the steel industry. The progress made during the pre-feasibility stage is a testament to the collaboration of all parties involved.
“BlueScope’s role as Project Manager leverages our deep iron and steelmaking experience at the Port Kembla Steelworks and our unique capability as the operator of the world’s only electric smelting furnace processing DRI in New Zealand.”
