Australian Consortium Chooses Western Australia Location for Electric Smelting Furnace
12/17/2024 - A consortium made up of Australia’s two largest iron ore miners and its largest steelmaker have selected a location for a proposed ironmaking electric smelting furnace pilot plant.
According to consortium members BlueScope, BHP and Rio Tinto, the plant will be built in the Kwinana Industrial Area, south of Perth. The plant, dubbed NeoSmelt, will be used to test technology to enable the use of Pilbara iron ore to produce iron without the need for traditional blast furnaces.
The pilot plant would produce 30,000 to 40,000 metric tons of molten iron a year. It will initially use natural gas to reduce iron ore to direct reduced iron (DRI), but once operational, the project aims to use lower-carbon-emissions hydrogen to reduce iron ore.
“Today marks a significant milestone in what is truly a unique and transformative project to help decarbonize the steel industry. The progress made during the pre-feasibility stage is a testament to the collaboration of all parties involved,” said Tania Archibald, BlueScope chief executive Australia.
“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.”
The consortium said the location was chosen for its access to transport logistics and existing infrastructure, coupled with support from an AUD$75 million contribution from the Western Australian government.
Subject to funding, the project anticipates a decision to enter feasibility studies in the second quarter of 2025 and is targeting a final investment decision in 2026, with operations expected to begin in 2028.
The pilot plant would produce 30,000 to 40,000 metric tons of molten iron a year. It will initially use natural gas to reduce iron ore to direct reduced iron (DRI), but once operational, the project aims to use lower-carbon-emissions hydrogen to reduce iron ore.
“Today marks a significant milestone in what is truly a unique and transformative project to help decarbonize the steel industry. The progress made during the pre-feasibility stage is a testament to the collaboration of all parties involved,” said Tania Archibald, BlueScope chief executive Australia.
“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.”
The consortium said the location was chosen for its access to transport logistics and existing infrastructure, coupled with support from an AUD$75 million contribution from the Western Australian government.
Subject to funding, the project anticipates a decision to enter feasibility studies in the second quarter of 2025 and is targeting a final investment decision in 2026, with operations expected to begin in 2028.
