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Western Australia approves low-carbon iron processing plant in Port Hedland

A project to establish a low-carbon iron processing plant in Port Hedland has been approved by the Western Australian government. The project will be developed as a large-scale downstream processing facility at the export hub in the Pilbara region.

Western Australia approves low-carbon iron processing plant in Port Hedland

The project, approved by Matthew Swinbourn, is backed by South Korean steel producer POSCO and will be constructed in the Boodarie Strategic Industrial Area.

The project includes both a pellet plant and a hot briquetted iron (HBI) production facility. The plan aims to process raw iron ore on-site into higher value-added products instead of exporting it in its raw form.

According to the proposal, the facility will process between 3 and 3.5 million tons of iron ore annually. Of this, approximately 2 million tons will be exported as HBI, while around 0.7 million tons will be exported as iron ore pellets.

HBI is considered a lower-carbon and higher-quality alternative to scrap metal in steel production. The project is also designed to integrate sustainable production technologies, including hydrogen production and storage facilities, a nitrogen plant, and potential carbon capture, storage, and transport infrastructure.

The facility is expected to cover an area of approximately 518 hectares, with 300 hectares allocated for the processing hub. An additional 466-hectare development area is also planned for energy transmission and water storage infrastructure.

The project’s operational life is projected at 99 years, with a total lifespan of 101 years. It is regarded as a significant step in Western Australia’s green steel transition, while noting that third-party investments and operations will be subject to separate approval processes.

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