Australia’s top iron ore producers, Rio Tinto and BHP, have joined forces with the country’s largest steelmaker, BlueScope, to spearhead efforts in decarbonising steel production.
The trio has committed to jointly explore the development of Australia’s inaugural ironmaking Electric Smelting Furnace (ESF) pilot plant, marking a significant stride towards sustainable steel manufacturing.
Under a newly inked framework agreement, Rio Tinto, BHP, and BlueScope will consolidate their respective expertise and resources to propel the advancement of ESF technology, Rio Tinto said in a news release.
This initiative aims to demonstrate the viability of producing molten iron from Pilbara ores using renewable energy sources, coupled with Direct Reduced Iron (DRI) process technology.
If successful, this initiative could pave the way for steelmakers reliant on Australian iron ore to achieve near-zero greenhouse gas emissions.
The partnership underscores a commitment to collaborative innovation, leveraging BHP’s and Rio Tinto’s profound understanding of Pilbara iron ores alongside BlueScope’s operational proficiency in ESF technology.
By pooling their strengths, the companies seek to expedite the transition to low-carbon steel production methods.
Assessments for potential pilot plant locations across Australia are already underway, taking into account various factors such as infrastructure availability, workforce accessibility, and suitability for operational trials.
The pre-feasibility study is slated for completion by the end of the year, with plans for the pilot facility to be operational as early as 2027, pending approval.
Simon Trott, chief executive of Rio Tinto Iron Ore, emphasised the urgency of addressing the carbon intensity of steelmaking.
“We must find better ways to enable these materials to be made more sustainably through leveraging technology,” he noted.
Echoing Trott’s sentiments, Tim Day, incoming BHP Western Australia Iron Ore Asset President, expressed enthusiasm for the partnership’s potential to revolutionise steel production, calling collaborations like this “so important for the success of these technologies.”
Tania Archibald, chief executive Australia of BlueScope, outlined the company’s vision for sustainable manufacturing, emphasising the significance of leveraging Australia’s natural advantages in iron ore resources and renewable energy potential.
“We believe that this collaboration where we can contribute BlueScope’s unique experience in operating an ESF will be key to cracking the code for Pilbara ores in low emission-intensity ironmaking,” Archibald concluded.
