Australia is a step closer to establishing its first ultra-low-carbon steelmaking operation, with a billion-dollar contract signed by a Sydney-based steelmaker.
Greensteel Australia has signed a $1.6 billion deal with global steelmaking infrastructure group Danieli to purchase stages two and three of a proposed mill.
Greensteel President Mena Ibrahim said the order comprised a direct reduced iron (DRI) plant, two electric arc furnaces, a structural steel rolling mill with high-speed rail capability, and a second rolling mill for reinforced steel (rebar).
Mr Ibrahim said the latest contract followed an initial order with Italy-based Danieli for fabrication of a single rebar rolling mill in October last year.
He said delivery of the three mills, two arc furnaces and DRI plant was expected by late 2026 or early 2027.
“(This) will mark a crucial milestone in Greensteel’s plans to establish Australia’s first ultra-low-carbon steelmaking operation, bolstering the country’s sovereign steelmaking capability.”
Mr Ibrahim said the company was committed to establishing Australia’s most advanced steelmaking hub while contributing to heavy-industry decarbonisation.
“Danieli is the world’s leading provider of advanced, high-technology steelmaking infrastructure. Bringing their expertise to Australia will immediately position this country among the ranks of the most advanced steel suppliers globally,” he said.
“We have agreed on an expedited delivery timetable with Danieli. This will bring our steelmaking capability onstream within two years, creating over 1500 permanent jobs and 2500 jobs during construction.”
Mr Ibrahim said the investment was critical, especially given the uncertainty caused by the collapse of the existing steelworks in Whyalla and the gap it left in Australia’s sovereign steel capability.
He said the DRI plant could operate on hydrogen rather than coking coal to refine magnetite into iron pellets, enabling a cleaner steelmaking process.
“(Also) among the new facility’s capabilities, was the capacity to produce ultra-long sections required for high-speed rail, currently not manufactured in Australia.”
Mr Ibrahim said while Greensteel continued to assess potential sites for the mill, the preferred location remains Whyalla, in South Australia, adjacent to the existing steel works.
“Whyalla offers everything we need – an experienced workforce, a high-quality magnetite resource, port facilities and reliable renewable energy,” he said.
