POSCO's US$3 Billion Low-Carbon Iron Ore Processing Plant Project Approved by Australian Government

en.Wedoany.com Reported - On October 15, Australia's federal environmental authority published its conditional approval decision for Phase 1 of the Port Hedland Iron Project, which is led by South Korea's POSCO Group with a planned investment of approximately AUD 4.4 billion to build low-emission iron ore processing facilities near Port Hedland in the Pilbara region of Western Australia, with a designed annual capacity of 2 million tonnes of hot briquetted iron. The federal approval decision was made on October 6, following the project's receipt of Western Australian state-level environmental approval on April 7. The project still requires a final investment decision by the joint venture parties, with a target of commencing operations in 2031.

The project site is located in the Boodarie Strategic Industrial Area, approximately 10 kilometers southwest of Port Hedland. Phase 1 plans to build an iron ore pellet plant and a hot briquetted iron plant, with expected consumption of 3 million to 3.5 million tonnes of iron ore per year. Most of the pellet output will enter subsequent direct reduction and hot briquetting processes, ultimately producing approximately 2 million tonnes per year of hot briquetted iron and 700,000 tonnes of exportable iron ore pellets. Supporting facilities include magnetite concentrate receiving and storage/transport systems, hydrogen production and storage facilities, natural gas pipeline connections, water and power supply facilities, and product loading, unloading and storage systems.

The joint venture is held 51% by POSCO Group, 24.5% by Japan's Marubeni Corporation, and 24.5% by Taiwan's China Steel Corporation. The plant plans to adopt MIDREX Flex direct reduction technology, initially using natural gas as the reducing agent and gradually blending in hydrogen based on hydrogen supply capacity and economics. Public technical materials for the project estimate that the initial process can reduce the greenhouse gas emissions intensity of subsequent steelmaking by approximately 50% to 55% compared with conventional coal-based blast furnace processes.

According to the federal environmental approval materials submitted in April 2026, Phase 1 had planned to commence construction in the first quarter of 2027 following the final investment decision. The electricity, natural gas and water required by the project will be supplied by third parties, and some external supporting facilities must proceed through their respective approval processes. Hot briquetted iron and pellet products are planned to be exported through Port Hedland; the port's maritime and export facilities are not within the direct construction scope of this federal environmental approval.