A new consortium, Green Iron SA, has been officially launched with the aim of accelerating the development of South Australia’s green iron industry.
The consortium, comprised of Magnetite Mines, Aurizon Holdings, Flinders Port Holdings, and GHD, seeks to harness the potential of the state’s Braemar iron region alongside its extensive renewable energy capacity.
Green Iron SA proposes a phased development approach, starting with the fast-tracking of the Razorback iron ore project, located 240 kilometres northeast of Adelaide.
This project will create a secure supply of high-purity magnetite, a critical feedstock for green iron production.
The consortium plans to progress to the production of direct reduction grade pellets and ultimately manufacture and export direct reduced iron in the form of hot briquetted iron from Port Pirie by the early 2030s.
The consortium is calling for partnerships with the South Australian and federal governments to expedite critical enabling infrastructure in water, power, and logistics needed to support the new green iron industry.
Tim Dobson, Managing Director of Magnetite Mines, emphasised the importance of this initiative: “With six billion tonnes of magnetite resources ready to mine, Magnetite Mines is excited to take this important step toward building a world-class green iron industry in South Australia.
“This project not only aligns with global decarbonisation goals but also positions South Australia as a leader in sustainable mining and green iron production.”
David Steele, Head of Customers and Growth at Aurizon, highlighted the logistical aspects: “Aurizon is supporting the development of a project critical to addressing the challenge facing the steel sector’s carbon emissions by providing the rail and freight infrastructure that will make South Australia’s green iron industry globally competitive.”
The consortium’s efforts align with recent studies demonstrating South Australia’s competitive advantage in green iron production.
A collaboration between the Port of Rotterdam and Monash University showed that South Australian green iron has a 21 per cent cost advantage compared to shipping its raw components to Europe.
The South Australian government has also unveiled a Green Iron and Steel Strategy, outlining objectives and key actions to establish a world-leading green iron industry and supply chain in the state.
This includes the ambition to facilitate a new hydrogen-based green iron plant in South Australia by 2030 or earlier.
As the global steel industry seeks to decarbonise, Green Iron SA’s initiative positions South Australia to play a significant role in the future of sustainable steel production, leveraging its natural resources and renewable energy capabilities.
