Australia’s largest iron ore miners, BHP and Rio Tinto, alongside BlueScope, have chosen the Kwinana Industrial Area in Western Australia (WA) for a pilot plant study on ironmaking using an ESF.
The NeoSmelt collaboration aims to decarbonise steelmaking by using Pilbara iron ore without traditional blast furnaces, marking a significant step in reducing carbon emissions.
The collaboration, formed in February, combines BHP and Rio Tinto’s expertise in Pilbara iron ore with BlueScope’s experience in ESF technology.
Woodside Energy will join as an equal equity participant and energy supplier, pending commercial arrangements.
The Kwinana Industrial Area was selected for its transport logistics, infrastructure and a A$75m ($47.6m) contribution from the WA Government.
The pilot plant aims to test and optimise the ESF, which can produce iron suitable for basic oxygen steelmaking, offering a low CO₂-emission-intensity alternative to traditional blast furnaces. It will produce 30,000–40,000 tonnes of molten iron annually.
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Initially, the plant will use natural gas to reduce iron ore to direct reduced iron (DRI), with plans to transition to hydrogen with lower carbon emissions.
If successful, NeoSmelt could pave the way for achieving near-zero emissions in steelmaking using Pilbara iron ore, ensuring the longevity of Australia’s iron ore industry.
BHP Western Australia Iron Ore Asset president Tim Day said: “We are thrilled to be well on our way to bringing this cutting-edge technology to life right here in Western Australia.
“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.
“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.”
Feasibility studies are expected to commence in the second quarter of 2025, with a final investment decision targeted for 2026 and operations beginning in 2028.
The NeoSmelt project is open to collaborations with other parties that align with its objectives.
The DRI-ESF pathway could achieve up to 80% reductions in CO₂ emissions compared with conventional methods.
Unlike electric arc furnaces, which require scrap steel and high-grade iron ore, the ESF offers flexibility in raw materials, addressing barriers to adopting low-carbon technologies.
Rio Tinto Iron Ore chief executive Simon Trott said: “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.
“We are excited to announce the location for Australia’s largest ironmaking ESF pilot plant is in Western Australia. It is just one of the ways we are working with our peers to develop the technology needed to reduce the carbon intensity of iron and steelmaking.
“The NeoSmelt pilot plant builds on the suite of projects Rio Tinto has under way with our customers and suppliers to find better ways to accelerate their efforts to meet their decarbonisation targets.”
