BlueScope is partnering with Australia’s two largest iron ore producers in a pilot project to accelerate the decarbonisation of steelmaking by developing Australia’s first ironmaking electric smelting furnace plant. Under a new framework agreement, Rio Tinto, BHP and BlueScope will develop and potentially invest in a pilot facility to demonstrate that production of molten iron from Pilbara ores is feasible using renewable power when combined with Direct Reduced Iron (DRI) process technology. If successful, it could help open a potential pathway to near-zero greenhouse gas emission-intensity operations for steelmakers that rely on Australian iron ore to meet global steel demand.
The parties will assess several locations in Australia for the proposed pilot facility, and will consider factors like supporting infrastructure, available workforce, access to target industry and supply chain partners, and suitability for operational trials. The pre-feasibility study work program is expected to conclude at year-end. If approved, the pilot facility could be commissioned as early as 2027.