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🇦🇺 Australia /Economy & Trade

Company pledges $500m for net-zero mill to resurrect 'steel city'

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Greensteel Australia plans to build a $500 million, zero-emissions steel mill in Newcastle, Australia.
  • The mill will produce up to 600,000 tonnes of steel annually, aiming to reduce reliance on imported steel and stabilize prices.
  • The project is expected to create over 200 direct jobs and boost Newcastle's historical industrial identity.

Newcastle's historical identity as Australia's "steel city" is poised for a revival with Greensteel Australia's proposal for a new zero-emissions steel mill. The Australian company has secured a 70,000-square-meter site at Mayfield North for the plant, which is projected to produce up to 600,000 tonnes of finished steel annually, with operations expected to commence by January 2028.

Greensteel Australia expects the extra local supply to reduce the construction industry's reliance on imported steel and, over time, help stabilise and bring down steel prices for Australian builders

— Greensteel spokespersonA statement from Greensteel Australia regarding the new mill's economic impact.

Greensteel Australia intends to invest $500 million in the facility, which will supply products for housing, transport, and energy sectors. The company anticipates that increased local steel supply will lessen the construction industry's dependence on imports and contribute to stabilizing steel prices for Australian builders. Initially, the mill will produce raw steel on-site, with plans to eventually manufacture steel entirely from Australian iron ore to finished products within Newcastle.

The plan is for it to be Australian all the way through from the iron through to the turning of the iron ore into iron metal and then rolling into steel in Newcastle

— Ross GarnautRoss Garnaut, Chair of the Greensteel Advisory Group, outlining the project's long-term vision.

Ross Garnaut, Chair of the Greensteel Advisory Group, highlighted the plant's commitment to sustainability, stating it will use a zero-carbon alternative, such as green hydrogen or induction steelmaking, instead of natural gas for the rolling process. The project is set to create over 200 direct full-time jobs, including roles for fitters, electricians, crane drivers, metallurgists, and engineers, in addition to construction and supply chain employment.

That will all be done as soon as that can be put in place, but the first step is the rolling

— Ross GarnautProfessor Garnaut discussing the phased approach to production at the new mill.

This initiative arrives as Newcastle, which lost its major employer BHP steelworks in 1999, faces uncertainty in other industrial sectors like coal and aluminum production. The announcement follows news that train manufacturing will also return to the region, signaling a potential resurgence of industrial activity.

The [new] mill will directly employ over 200 direct full-time staff, including fitters, electricians, crane drivers, metallurgists and engineers, with more jobs created during construction and through Hunter supply chains

— Greensteel spokespersonA Greensteel spokesperson detailing the employment opportunities created by the project.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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