Posted on 18 Dec 2024
Australian iron ore miners BHP and Rio Tinto, together with steelmaker Bluescope have selected the Kwinana Industrial Area, as the location to develop the country’s largest ironmaking electric smelting furnace (ESF) pilot plant, Kallanish notes.
Rio Tinto says in a statement that the pilot plant would produce 30,000 to 40,000 tonnes of molten iron a year. It will initially use natural gas to reduce iron ore to direct reduced iron (DRI), but once operational, the project aims to use lower-carbon emissions hydrogen for reduction.
The project allows the trio to test technology to enable the use of Pilbara iron ore to produce iron without the need for traditional blast furnaces, as the companies come together to try to accelerate the decarbonisation of steelmaking.
The industry leaders formed the NeoSmelt collaboration in February, combining BHP and Rio Tinto’s knowledge of Pilbara iron ore, with BlueScope’s operating experience in ESF technology.
The NeoSmelt parties also announce Woodside Energy will join the consortium as an equal equity participant and energy supplier, subject to finalising commercial arrangements. The pilot plant aims to prove Pilbara iron ore can be used to produce lower-carbon emissions molten iron using DRI-ESF technology.
If successful, NeoSmelt has the potential to open a pathway to near-zero emissions steelmaking using Pilbara iron ore and ensure the longevity of Australia's iron ore industry.
The NeoSmelt parties assessed a number of pilot plant locations in Australia before selecting the Kwinana Industrial Area, utilising its access to transport logistics and existing infrastructure, coupled with support from an AUD 75 million ($47.53m) contribution from the Western Australian government.
Subject to funding, the project anticipates a decision to enter feasibility studies in the second quarter of 2025. It is targeting final investment decision for the pilot plant in 2026, with operations expected to begin in 2028.
Source:Kallanish
