A landmark Australian-based project to transform low-grade iron ore into molten iron using a low-emissions electric smelting furnace is set to transform Australia’s steel industry.
The technology is the brainchild of ASI steelmaker member BlueScope and iron ore producers Rio Tinto and BHP, with oil and gas giant Woodside as a project partner and energy supplier. Called NeoSmelt, the initiative aims to process the iron ore at a furnace to be built at Kwinana in Perth's south. The molten iron could then be made into steel. Most of WA's iron ore is currently shipped overseas for processing, with China, Japan, South Korea and Taiwan the state's biggest customers. A small percentage is processed at Australian plants at Whyalla in South Australia and Port Kembla in New South Wales. These use traditional blast furnaces powered by coal.
Pre-feasibility works are underway, with a final investment decision to be made in 2026. If the project gets approved, the pilot plant could be operational by 2028. It is expected to produce between 30,000 and 40,000 tonnes of molten iron per year.
