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Resources majors explore novel ways to decarbonise steelmaking

08 Aug, 2025
Resources majors explore novel ways to decarbonise steelmaking



Despite experiencing downstream processing failures in Western Australian the past, two of the world’s largest iron ore producers are returning to the arena as they seek to accelerate the decarbonisation of steelmaking.

Rio Tinto and BHP, together with BlueScope, have made the intention to develop the country’s largest ironmaking electric smelting furnace (ESF)pilot plant, using feedstock sourced from WA’s Pilbara.

If it goes ahead, the freshly created joint venture– NeoSmelt – will negate the need for traditional blast furnaces through the establishment of a facility which can produce lower carbon emissions from molten iron through the utilisation of direct reduced iron (DRI)-ESF technology.

The proposed plant will be located at the Kwinana industrial estate just south of WA’s capital Perth and is expected to yield 30,000 to 40,000 tonnes of molten iron each year.

While initially using natural gas supplied by Woodside Energy, once operational the project proponents aim to switch to lower-emission hydrogen to power the operation.

According to the JV partners, NeoSmelt has the potential to not only open the pathway to near-zero emissions steelmaking, but also help ensure the longevity of the country’s iron ore sector.

While Rio Tinto’s Simon Trott expressed excitement over the ESF’s location, it could generate some mixed feelings for the mining house given its previous downstream processing experience in the same industrial estate.

In the mid-2000s, the company had a 60 per cent stake in the $400 million HIsmelt pig iron project, applying what was regarded as a revolutionary direct smelting

Although the operation started in 2005, it was eventually mothballed in 2007 – reportedly due to depressed global prices and a poor market outlook.

This time around though, the NeoSmelt partie sassessed a number of pilot plant locations in Australia before selecting Kwinana due to its access to transport logistics and existing infrastructure, coupled with a $75million injection from the WA government.

Subject to funding, the JV anticipates a decision to enter feasibility studies in the second quarter of this year, with a final investment decision expected by the end of 2026 and the plant to be operational by 2028.

“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,” Trott said.“The NeoSmelt pilot plant builds on the suite ofprojects Rio Tinto has underway with our customers and suppliers to find better ways to accelerate their efforts to meet their decarbonisation targets.”

For BHP, its past value-adding venture in WA’s PortHedland was arguably much worse than the HIsmeltc ollapse. After its official opening in 1999, it was envisaged the$2.6 billion Boodarie hot briquetted iron plant would yield2.3 tonnes of product per annum using ore sourced from the company’s Newman operations.

The miner, however, never reached this name plate target before the facility was closed in 2005 after being written off in 2000, with the plant eventually being demolished in 2007.

For its latest venture however, BHP iron ore asset president Tim Day maintained the company was thrilled to be well on its way“ 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,” he said.

“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 importantof a low greenhouse gas emission future.”

Meanwhile, BlueScope’s Australian chief executive,Tania Archibald, described NeoSmelt as a “significant milestone” in what was truly a “unique and transformative” to help decarbonise the steel industry.

“The progress made during the pre-feasibility stage is a testament to the collaboration of all parties involved,” she noted.

BlueScope’s role as project manager leverages our deep iron and steelmaking experience at the Port KemblaSteelworks and our unique capability as the operator of the world’s only ESF processing DRI in New Zealand.”

Estimates show reductions of up to 80 per centin carbon dioxide emission intensity is achievable processing Pilbara iron ore through a DRI-ESF pathway.

The ESF also allows for greater flexibility in rawmaterials, addressing one of the key barriers to the

wider adoption of lower-carbon emissions technology such as electric arc furnaces, which require scrap steel and DRI produced from high grade ore.

Additionally, it has the potential to be integrated into a steel plant’s existing downstream production units.

Another WA iron ore miner with a proactive sustainable agenda, Fortescue Metals Group, is also looking to decarbonise its Pilbara operations via its $50million Green Metals project at Christmas Creek as it attempts to establish a green metal supply chain.The company is focused on green electrons and molecule production, as well as vehicle emission reduction, and has a 2030 zero carbon target in place.To help achieve this, last year the miner commissioned its gaseous and liquid hydrogen plant at Christmas Creek, which is the largest of its kind inAustralia.

“Doing this will see us eliminate fossil fuels from  our operations without any reliance on carbon offsets,”Fortescue chief executive Dino Otranto said last year.

Related Articles

Australian Green Iron & Steel Forum on 26-27 March 2025

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