Greensteel Australia will invest US$500m to build Australia’s first steel mill in over 30 years, with the finished project running entirely on electricity.
The company has secured a 70,000m² site in New South Wales for the construction of the plant, with the land previously being home to BHP Newcastle Steelworks.
Greensteel Australia CEO, Romany Ibrahim, said: “Australia stopped building steel mills a generation ago. Thanks to the leadership of the NSW and Federal Governments, we’re building again.
“They’ve made it possible to bring manufacturing home to Newcastle, where Australian steelmaking began and where it never should have left.”
The mill is set to produce up to 600kt/year of finished steel for the housing, transport and energy sectors.
An electric induction furnace will be used at the site, rather than fossil-fuel burners, which are used in traditional steelmaking.
This change provides advantages such as zero direct emissions and energy independence, as the facility will not be dependent on the supply of natural gas.
Greensteel Australia expects the extra local supply of steel will reduce the domestic construction industry’s reliance on imported products.
Greensteel Australia Chairman, Ross Garnaut AC, added: “Every tonne of steel we forge at Mayfield is a tonne Australia doesn’t have to import.
“That means more reliable supply and better prices for builders, and because there is no gas anywhere in our process, it also means lower embodied carbon in the homes and infrastructure this country needs. That’s a win for builders and home buyers, and a win for the Hunter.”
The mill will directly employ over 200 direct full-time staff, including fitters, electricians, crane drivers, metallurgists and engineers.
The furnace from Danieli Group is set to arrive in October 2027, with mill operations expected by January 2028.
