Rio Tinto, BHP and BlueScope will join forces to develop a new ironmaking electric smelting furnace (ESF) pilot plant in Kwinana, Western Australia.
The plant, dubbed “Australia’s largest”, will test technology to enable the use of Pilbara iron ore to produce iron without using traditional blast furnaces in a bid to accelerate decarbonisation in steelmaking.
The three majors will unite under the NeoSmelt name, leveraging Rio Tinto’s and BHP’s knowledge of Pilbara iron ore with BlueScope’s operating experience in ESF technology. Woodside Energy will also join the group as an equal equity participant and energy supplier.
WA Premier Roger Cook has welcomed the announcement, saying NeoSmelt will position WA at the cutting edge of emission reduction.
“Putting the global steel industry on the pathway to zero emissions means more jobs in processing in WA, and a strong future for WA’s iron ore industry,” he said.
The ESF pilot plant is set to produce 30,000–40,000 tonnes of molten iron a year, with the potential to open a pathway to near-zero emissions steelmaking in the Pilbara.
While still subject to funding, it is anticipated the plant will enter feasibility studies in the second quarter of 2025. Final investment decision is targeted for 2026, with operations to commence in 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,” Rio Tinto Iron Ore chief executive Simon Trott said.
“The NeoSmelt pilot plant builds on the suite of projects Rio Tinto has underway with our customers and suppliers to find better ways to accelerate their efforts to meet their decarbonisation targets.”
BHP Western Australia Iron Ore (WAIO) asset president Tim Day said the company is thrilled to be bringing the plant to life.
“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 important part of a low greenhouse gas emission future.”