Two of Australia’s major miners and its biggest steelmaker plan to develop the country’s largest ironmaking electric smelting furnace (ESF) pilot plant in the Kwinana Industrial Area, south of Perth, in Western Australia.
The companies formed the NeoSmelt collaboration in February 2024, combining BHP and Rio Tinto’s deep knowledge of Pilbara iron ore, with BlueScope’s unique operating experience in ESF technology. Woodside Energy has also joined the consortium as an equal equity participant and energy supplier, subject to finalising commercial arrangements.
The pilot plant aims to prove Pilbara iron ore can be used to produce lower-carbon emissions molten iron using direct reduced iron (DRI)-ESF technology. It will produce 30,000-40,000 tonnes of molten iron per year. The plant will initially use natural gas to reduce iron ore to DRI, but once operational, the project aims to use lower-carbon emissions hydrogen to reduce iron ore.
If successful, the NeoSmelt project has the potential to open a pathway to near-zero emissions steelmaking using Pilbara iron ore and ensure the longevity of Australia’s iron ore industry.
“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,” said BHP Western Australia Iron Ore (WAIO) Asset President Tim Day.
“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.”
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 for the pilot plant in 2026, with operations expected to begin in 2028.
Source: BlueScope