- 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.
Comments attributed to 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."
Comments attributed to 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."
Comments attributed to
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."
Comments attributed to
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."
Comments attributed to
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."
Comments attributed to
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."
