- Kwinana to be home to Australia's largest ironmaking electric smelting furnace
- NeoSmelt project to test turning Pilbara iron ore into near-zero emission iron
- WA at the cutting edge of global efforts to decarbonise steel-making, creating the jobs of the future and setting up the State's economy for the long-term
- Cook Labor Government to invest $75 million to support the pilot facility, in partnership with BlueScope, BHP, Rio Tinto and Woodside
Western Australia will be home to the nation's largest ironmaking electric smelting furnace, with the NeoSmelt consortium today announcing Kwinana as the preferred location for its pilot plant - backed by a major Cook Labor Government investment.
The project will position WA as a world-leader in low-emissions iron ore processing, as part of the Cook Labor 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 today 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.
As stated by Premier Roger Cook:
"Under my WA Labor Government, our State is becoming a global renewable energy powerhouse - creating the jobs of the future and setting up our economy for the long term.
"Securing NeoSmelt for Kwinana positions WA at the cutting edge of the global push to slash emissions from steel production - and means our Pilbara iron ore will be processed right here in WA.
"Putting the global steel industry on the pathway to zero emissions means more jobs in processing in WA, and a strong future for WA's iron ore industry."
As stated by Mines and Petroleum Minister David Michael:
"The NeoSmelt project is another fantastic way the Cook Government is ensuring that Western Australia plays a key role to support the steel industry to decarbonise.
"The iron ore industry is critically important to the Western Australian economy and provides skilled jobs for many Western Australian families.
"The NeoSmelt project will provide long term value for the State and our trading partners, and will support the longevity of the iron ore industry in Western Australia."
As stated by BlueScope Chief Executive Australia Tania Archibald:
"Today 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."
As stated by BHP Western Australia Iron Ore Asset President Tim Day:
"We're thrilled to be well on our way to bringing this cutting-edge technology to life right here in Western Australia.
"A successful pilot plant of this scale would be a huge achievement as we work with our partners, here and around the world, to help fast-track near zero emission pathways for steelmakers using Pilbara ores.
"These are the Pilbara ores that power this nation's economy, so getting it right would be a major step forward in setting up WA and Australia to be an important part of a low greenhouse gas emission future."
As stated by Rio Tinto Iron Ore Chief Executive Simon Trott:
"We must find better ways to produce the most commonly used metal in the world, while meeting the needs of our planet and our climate objectives.
"We are excited to announce the location for Australia's largest ironmaking ESF pilot plant is in Western Australia. It's just one of the ways we're working with our peers to develop the technology needed to reduce the carbon intensity of iron and steelmaking.
"The NeoSmelt pilot plant builds on the suite of projects Rio Tinto has underway with our customers and suppliers to find better ways to accelerate their efforts to meet their decarbonisation targets."
As stated by Woodside Energy Executive Vice President & Chief Operating Officer Australia Liz Westcott:
"Woodside is excited that it will join the NeoSmelt project as an equal equity participant and energy supplier alongside BlueScope, BHP and Rio Tinto, subject to finalising commercial arrangements.
"Natural gas and hydrogen may enable emissions reductions in steelmaking, and we are proud to bring to the NeoSmelt project our expertise, experience and know-how as a global supplier of energy.
"Woodside supports the NeoSmelt project's goals of exploring lower-emissions steelmaking pathways for Pilbara iron ores and unlocking new skills and capabilities through the energy transition."
