Under the agreement, the supplied natural gas is intended to enable the Whyalla Steelworks to process locally sourced magnetite ore and produce direct reduced iron (DRI). Through this transition, emissions are expected to be reduced by approximately 50% compared to coal-fired blast furnace operations. The facility’s annual production capacity is stated at 1.2 million metric tons.
The Whyalla Steelworks entered a sales process last year after its owner, GFG Alliance, was placed into administration. The South Australian government plans to gradually transform the facility into a more environmentally friendly and sustainable production operation. Long-term objectives also include investments in solar and wind energy.
Meanwhile, Australia’s Federal Minister for Industry and Innovation Tim Ayres and South Australian Premier Peter Malinauskas announced the commencement of geotechnical drilling works under the Magnetite Expansion Project in the Middleback Ranges. The project is expected to produce up to 2.5 million tons of magnetite per year and to play a critical role in the transition to green iron and steel.
The shift of the Whyalla Steelworks toward natural gas–based production aims to enhance the facility’s competitiveness while supporting the transformation of South Australia’s industrial infrastructure toward a lower-carbon structure.
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