First Aus low emissions steel mill one step closer

Image: davit85/stock.adobe.com

Australia’s first low emissions steel mill and Western Australia’s first steel recycling mill are one step closer with Green Steel of WA securing all regulatory and statutory approvals required for feasibility.

Supported by $2.7 million in funding from the Cook Government, the project is closing in on its final investment decision with front-end engineering design now complete.

In a first for WA, Magnium’s state-of the art pilot plant is now operational in Collie’s Light Industrial Area, marking a major milestone in the development of sustainable magnesium production in Australia.

“Establishing a green iron and steel industry in WA is a key focus of our Made in WA plan, and Collie’s Green Steel Mill will kick start this new industry,” said premier and State Development minister, Roger Cook.

“Hitting these key milestones is another step forward to securing Collie’s future as a major new industrial hub.”

Magnium’s facility represents a significant step forward in establishing a domestic supply of this critical defence and automotive metal and was supported by $7.5 million through the Collie Industrial Transition Fund.

International Graphite has commenced its Battery Anode Material Facility Feasibility Study, demonstrating industry interest in developing projects at Coolangatta Industrial Estate.

The facility will produce graphite products for battery materials and a variety of industrial uses. The State Government has provided $12.5 million in support to International Graphite.

Tesla’s battery re-manufacturing facility is also powering ahead with construction underway, and due for completion in October 2025. The facility will service, repair, and renew Tesla’s battery products, including Megapacks.

The projects reflect the WA Government’s commitment to the transition of Collie’s economy and workforce as it moves towards a renewable future.

The WA Government has invested more than $662 million to deliver a Just Transition for Collie, attracting new industries and putting training opportunities in place as the economy transitions away from coal.

Greensteel Australia places $1.6 billion order for fabrication of steel mill

Jack Lloyd

Image: GreenSteel Australia

Sydney-based Greensteel Australia has announced it had placed an order with leading global steelmaking infrastructure group Danieli Group to purchase stages two and three of its proposed ultra-low-carbon steel mill.

The order, valued in excess of $1.6 billion, comprises a direct reduced iron (DRI) plant, two electric arc furnaces, a structural steel rolling mill with high-speed rail capability, and a second rolling mill for reinforced steel (rebar).

The order follows Greensteel’s placement of an initial order with Italy-based Danieli for fabrication of a single reinforced steel (rebar) rolling mill in October last year.

Delivery of the three mills, two arc furnaces and DRI plant is expected by late 2026 or early 2027 and will mark a crucial milestone in Greensteel’s plans to establish Australia’s first ultra-low-carbon steelmaking operation, bolstering the country’s sovereign steelmaking capability.

Speaking at a contract-signing event in Adelaide, Greensteel president and executive director, Mena Ibrahim, emphasised the company’s commitment to establishing Australia’s most advanced steelmaking hub while contributing to heavy-industry decarbonisation.

“Danieli is the world’s leading provider of advanced, high-technology steelmaking infrastructure. Bringing their expertise to Australia will immediately position this country among the ranks of the most advanced steel suppliers globally,” Ibrahim said.

“We have agreed on an expedited delivery timetable with Danieli that will allow us to bring our steelmaking capability onstream within two years. This will bring our steelmaking capability onstream within two years, creating over 1,500 permanent jobs and 2,500 jobs during construction. These are critical steps forward, especially given the uncertainty caused by the collapse of the existing steel works in Whyalla and the gap it leaves in Australia’s sovereign steel capability.

“We’re excited to be partnering with Greensteel on their plans to bring ultra-low-carbon steelmaking to Australia. From the very beginning we have been impressed with the boldness of Greensteel’s vision and their commitment to the industrial decarbonization agenda. We look forward to delivering on this commitment and bringing world-leading steelmaking capability to Australia.”

Among the new facility’s capabilities is the capacity to produce ultra-long sections required for high-speed rail, currently not manufactured in Australia. Although significantly expanding Australia’s steelmaking output (to four times that of the existing Whyalla plant), the modern configuration requires just 70 hectares, in contrast to Whyalla’s 1,000-hectare footprint.

The DRI plant can operate on hydrogen rather than coking coal to refine magnetite into iron pellets, enabling a cleaner steelmaking process.

While Greensteel continues to assess potential sites for the mill, the preferred location remains Whyalla, adjacent to the existing steel works.

“Whyalla offers everything we need – an experienced workforce, a high-quality magnetite resource, port facilities and reliable renewable energy,” Ibrahim said.

“Greensteel’s proposed mill provides a clear way forward for the region. With the existing steelworks in Administration, we believe our mill can be built in parallel, enabling a smooth transition for the workforce at the conclusion of that process. This is vital for the people of Whyalla and the local community.”,” he said.

Greensteel’s sister company Reosteel, based in Sydney, is a well-established manufacturer of finished steel products for the construction industry.

Major steel player to scope out Whyalla steelworks

Olivia Thomson

The Whyalla steelworks in South Australia. Image: Alexander/stock.adobe.com

Bluescope has been appointed as a steelmaking advisor to KordaMentha, the administrators of the Whyalla steelworks business in South Australia.

Known as Australia’s largest steel manufacturer, BlueScope will provide technical and operational support in an advisory capacity to the administrators as they try to secure ongoing operations at the Whyalla steelworks.

“BlueScope has a long-standing history with the Whyalla steelworks, and we know its people and assets well,” BlueScope managing director and chief executive officer Mark Vassella said.

“We recognise the ongoing importance of Whyalla to the Australian economy and sovereign capability. This is a difficult time for the steel industry in the Asia Pacific region, but we are in a position to help.

“Accordingly, we will provide a team of experts from Port Kembla Steelworks to assist the administrators work through their process.”

BlueScope has not provided investment or corporate support to the administration process, nor has it decided to participate in any potential sale at this stage.

However, Vassella said BlueScope becoming an advisor to Whyalla steelworks’ administrators may help inform potential participation.

BlueScope’s appointment comes as the $2.4 billion support package from the SA and Federal Governments is progressing to plan, with funds flowing to the local Whyalla community.

The support package was announced in late February to support local jobs and stimulate growth in SA’s steel sector following the Whyalla steelworks’ owner, OneSteel Manufacturing, being placed under administration amid various operational challenges at the site.

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Steelworks forced into administration to ‘save’ future

The Whyalla Steelworks has been placed into administration after the South Australian government rushed legislation through parliament and pledged “one of the most comprehensive industry support packages that this nation has ever seen”.

The move gives the government authority to act on debts owed by GFG Alliance and secure the future of the mid-north operations.

BHP locks in green steel deal

Kelsie Tibben

Image: JHVEPhoto/shutterstock.com

BHP has locked in a deal to support India’s steelmaking decarbonisation journey.

India’s largest government-owned steel producer, the Steel Authority of India Limited (SAIL), will work with BHP to lower carbon steelmaking technology pathways for the country’s blast furnace route.

Under a memorandum of understanding, the parties are already exploring a number of workstreams supporting the potential decarbonisation of SAIL’s blast furnace steel plants, commencing with an initial study to assess various strategies to reduce greenhouse gas emissions.

These workstreams will consider the role of alternate reductants for the blast furnace such as hydrogen and biochar use, with a view to also building local research and development capability to support the decarbonisation transition.

BHP chief commercial officer Rag Udd said the deployment of technology and abatements on the blast furnace is critical to progressing India’s decarbonised steel industry.

“We recognise that decarbonising this industry is a challenge that we cannot meet alone, and we must come together to leverage shared expertise and resources, to support the development of technologies and capability that could have the potential to create a real change in carbon emissions both now and in the longer term,” Udd said.

SAIL chair Shri Amarendu Prakash said mid- to long-term partnerships like SAIL’s collaboration with BHP are vital to decarbonising not only India’s steel industry, but will have implications on a global scale.

“SAIL is looking forward to this collaboration with BHP in taking a step forward towards engaging in developing sustainable ways to produce steel,” Prakash said.

“SAIL is committed to contributing towards tackling the issue of climate change through fostering an innovative future for the steel industry in India.”

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A new way to decarbonise steel making

A new process could offer a solution to reducing carbon emissions in iron and steel making.

BioIron™ uses raw, sustainable biomass and microwave energy instead of coal to convert Pilbara iron ore to iron in the steelmaking process. BioIron has the potential to be carbon neutral and can result in net negative emissions when linked with carbon capture and storage.

We have proven the process works using a small-scale pilot plant, and now we’re planning to test it on a larger scale.

Why is low-carbon steel important?

Making steel – the process of converting iron ore into iron and iron into steel – uses a lot of energy. Because of this – and the fact it’s used in so many things – steel making is responsible for around 8% of all global emissions.

Most of these emissions are created during the industrial process transforming iron ore – the raw material – into metal. Decarbonising the way iron (and therefore steel) is made could make a significant contribution to reducing global emissions.

We worked with experts from the University of Nottingham, England and Metso Outotec, a specialist in sustainable technologies, to prove BioIron works on a small scale, and now we’re scaling it up to a continuous pilot plant with a capacity of one tonne per hour.

Rio and Metso strengthen BioIron partnership

Metso has been awarded a detailed design and engineering contract from Rio Tinto for its continuous pilot plant (CPP) on behalf of the BioIron process.

The BioIron process uses raw biomass instead of metallurgical coal as a reductant and microwave energy to convert Pilbara iron ore to metallic iron in the steelmaking process.

According to Rio Tinto, it has the potential to be carbon neutral and can result in net negative emissions when linked with carbon capture and storage.

The new contract awarded to Metso from Rio Tinto serves as an extension of the work both companies have been doing together on the development of the BioIron process since December 2022.

Rio Tinto proved the effectiveness of the process using ores from its mines in Australia in a small-scale pilot plant in Germany after testing by Rio Tinto, Metso and the University of Nottingham’s Microwave Process Engineering Group was conducted for 18 months.

Through this new contract, Rio Tinto aims to move further towards the full-scale implementation of the BioIron technology through the CPP operation, and Metso will deliver the detailed design of the CPP’s reduction furnace and other equipment for the BioIron process.

Rio Tinto general manager of steel decarbonisation David Leigh said this is an important step in developing the BioIron technology.

“This work is the key next step in the development of the BioIron technology and builds on the success of the research and development team,” Leigh said.

Metso director of ferrous metals Matthias Gabriel echoed similar sentiments.

“We are very excited to continue the close working relationship with Rio Tinto and to provide engineering and design support as we move to the next phase of development of the BioIron technology,” Gabriel said.

WA Government releases green steel report

OLIVIA THOMSON

The Western Australian (WA) Government has released a new report which details the State’s potential to join the rapidly growing global green steelmaking value chain.

(The report is available via the MRIWA website at: https://www.mriwa.wa.gov.au/minerals-research-advancing-western-australia/focus-areas/green-steel/ )

The Minerals Research Institute of Western Australia (MRIWA) said that the State has played a central role in the growth of the global steel industry for over 60 years.

“Steelmaking is a very energy intense process resulting in the global steel industry being one of the largest carbon emitters in the world… it is important to understand the significant challenges steelmakers are facing to reduce emissions in their operations,” the MRIWA said.

As a response to this issue, the MRIWA and the WA Government created the Western Australia’s Green Steel Opportunity report. It maps five ways in which WA iron ore can be used to reduce emissions from steelmaking.

The report considers the size and scale of the capital requirements and infrastructure needed for these pathways, and it identifies the State’s access to natural gas and renewable energy resources as key to supporting emissions reductions in steelmaking.

WA Premier Roger Cook said the report will help position the State as an investment destination for low-emissions steel opportunities.

“Our State’s abundant renewable energy resources alongside our world-leading iron ore industry puts WA front and centre in the global push towards green steel. Moving up the green steel value chain will diversify our economy and create more local jobs right across the State,” Cook said.

Mines and Petroleum Minister Bill Johnston said the State Government has a comprehensive understanding of the challenges facing the steel industry in its decarbonisation efforts and opportunities.

“The transition option of using natural gas has the potential to reduce emissions from iron making by 65 per cent and is technically feasible today. This information can be used to support investment attraction into Western Australia,” Johnston said.

Rio Tinto, China Baowu work to decarbonise steel

ALEXANDRA EASTWOOD

Rio Tinto has commended the Federal Government’s emissions-reduction policy for providing support to heavy industry.

Major miner Rio Tinto has joined forces with steelmaker China Baowu to explore ways to decarbonise the steel value chain in China and Australia.

Under a recently signed Memorandum of Understanding (MoU), the two companies will advance specific decarbonisation projects including:

Researching, building and demonstrating a pilot-scale electric melter, enabling low-carbon steel making
Optimising pelletisation technology for low-carbon shaft furnace-based direct reduction
Expanding China Baowu’s HyCROF technology, which can mitigate CO2 emissions
Jointly studying opportunities for the production of low-carbon iron in WA.

The MoU was signed in Shanghai by Rio Tinto chief commercial officer Alf Barrios and China Baowu vice president Hou Angui.

“Rio Tinto and China Baowu are united in a commitment to accelerating the delivery of low-carbon solutions for the entire steel value chain,” Barrios said.

“This MoU aims to address one of the biggest challenges faced by the industry – developing a low-carbon pathway for low-to-medium grade iron ores, which account for the vast majority of global iron ore supply.

“China’s commitment to curbing emissions and promoting high-quality green development is strongly aligned with our own position where climate change and the low-carbon transition are at the heart of our strategy.”

Rio chief executive of iron ore Simon Trott said the company is proud of its 40-year relationship with China Baowu.

“We look forward to progressing this study into the potential of low-carbon iron making in Western Australia as we work to ensure a positive future for Pilbara ores in a green steel world,” Trott said.

China Baowu said the company is committed to working with Rio Tinto now and into the future.

“With the mission of building an industrial ecosystem to promote the progress of human civilisation, China Baowu is committed to working with Rio Tinto to jointly study and provide low-carbon and green comprehensive solutions for the steel value chain, help the low-carbon transformation and upgrade of the steel industry chain, and support the world to address the challenge of climate change with pragmatic actions,” the company said.

Illawarra steel gets a boost

OLIVIA THOMSON

The Federal Government has announced the planning approval for a $182 million upgrade of three berths at Port Kembla, located in the Illawarra region in New South Wales.

The upgrade will help to guarantee the supply of Illawarra steel for new homes, schools, hospitals, and transport infrastructure.

The Minister for Planning and Public Spaces Paul Scully said the upgrade will help rebuild the domestic manufacturing industry in NSW and will support more than 14,500 jobs.

“Our construction industry is the largest user of Port Kembla’s steel, using more than 70 per cent of the site’s total output,” Scully said.

The Federal Minister added that the approval provides more capacity to import coking coal for steelmaking and keep production flowing when local coal supplies are scaled back from 2028.

“It’s an investment in jobs, training, and the Illawarra community, but importantly it’s a vote of confidence in NSW manufacturing and construction, providing the locally sourced steel they need to build the homes, hospitals, and transport infrastructure NSW needs,” Scully said.

Minister for Illawarra Ryan Park said the revamp of the three berths will lead to more local steel being used for major NSW Government projects, supporting thousands of local jobs.

“Illawarra steel contributes around $10.3 billion to the NSW economy each year, and this decision secures the continued direct employment of around 4500 people, together with another 10,000 people in the supply chain,” Park said.

BlueScope Australian chief executive Tania Archibald said the planning approval demonstrates the NSW Government’s commitment to secure the future of steelmaking in Australia.

“BlueScope operates five berths at Port Kembla to import a range of raw materials such as iron ore, coal, limestone, recycled steel scrap, and export steel products to customers, and the continued supply of these raw materials is critical to the operations of the steelworks,” Archibald said.

“This infrastructure upgrade represents a significant investment to secure the asset for the long-term whilst supporting future technology options for low-emissions steelmaking.”

BlueScope

钢铁制造商BlueScope大幅上调盈利指导股价走强

2023-04-24 10:31:12 (AET) by Edward Zhang 1715

钢铁制造商 BlueScope（ASX：BSL）预计，23财年下半年的基本息税前利润（EBIT）将在7亿至7.7亿澳元之间。这高于此前4.8亿至5.5亿澳元的指导范围。

【澳股资讯平台 – 61 Financial 4月24日讯】钢铁制造商 BlueScope（ASX：BSL）周一发布公告，提供了最新的盈利指导。

BlueScope目前预计，23财年下半年的基本息税前利润（EBIT）将在7亿至7.7亿澳元之间。这高于此前4.8亿至5.5亿澳元的指导范围。

根据更新，本次推动前景改善的其他因素包括：

北美涂层产品业务（Steelscape和ASC Profiles），由于美国钢材价格上涨对实现利润率产生了有利影响；和
澳大利亚钢铁产品，实现销售价格强于此前预期。该部门预计，与2023财年上半年相比，国内发货量将继续保持相似。
其他业务部门的表现预计将符合BlueScope于2023年2月发布的23财年上半年业绩指引，包括BlueScope房地产部门对下半年项目预期实现的适度贡献。

公司指出，修订后的指导将根据价差、外汇和市场情况而定。BlueScope截至2023年6月30日的年度财务业绩将于2023年8月21日发布。

公司总经理兼首席执行官Mark Vassella表示：“23财年下半年的前景改善令人高兴，这归功于我们员工的持续关注和奉献精神以及客户的忠诚。虽然我们能够从价格和价差的改善中受益，特别是在美国，但前景的改善也表明了运营多样化高质量资产组合的实力和弹性。”

公司股价一年走势回顾：

text 【更多BSL公告和股价走势请点击BSL个股页面】

消息来源：

公司公告BlueScope increases 2H FY2023 earnings guidance

Why is low-carbon steel important?

钢铁制造商BlueScope大幅上调盈利指导 股价走强

钢铁制造商BlueScope大幅上调盈利指导股价走强