Port Hedland is set to host a $4 billion hot briquetted iron (HBI) plant after Western Australia’s Environmental Protection Authority approved the Port Hedland iron (PHI) project.
The facility, backed by South Korean steel-maker POSCO, will process Pilbara iron ore into HBI and iron ore pellets within the Boodarie Strategic Industrial Area, nearly 10km south-west of Port Hedland.
The PHI project includes a pellet plant and an HBI plant, consuming 3–3.5 million tonnes of iron ore annually. Around two million tonnes of HBI will be produced each year, with the remainder exported as pellets.
Supporting infrastructure includes hydrogen production and storage, a nitrogen plant, handling and storage facilities, power transmission, carbon capture and administrative and workshop buildings.
Port Hedland mayor Peter Carter said the project would diversify the local economy.
“We’ve always been an iron ore port and we’ll continue to be an iron ore port,” he told the ABC. “But (now with) a company like POSCO coming to town and having a green (iron) mill in our town, it will attract so many other people … It’s a big drawcard for other industry to come to play.”
Hot briquetted iron is a higher-value product and could more than double Australia’s iron ore export revenue, according to the Superpower Institute.
The PHI project also aims to be powered by renewable energy by 2050, aligning with broader decarbonisation goals.
With approval from the WA Environmental Protection Authority secured, next steps include gaining approval from the area’s Native Title holders.