Greensteel pens $1.6b steelmaking infrastructure order poised for Whyalla
A Sydney-based company has progressed with its plans to build a low-carbon steel mill, placing a $1.6 billion order for infrastructure that might call Whyalla home.
Greensteel Australia today penned a contract with global steelmaking infrastructure group Danieli Group to purchase stages two and three of its proposed low-carbon steel mill.
Sydney-based Greensteel has previously said its preferred location for the mill is at Whyalla, adjacent to the existing steelworks, but the company continues to assess potential sites.
Today’s order includes a direct reduced iron (DRI) plant, two electric arc furnaces, a structural steel rolling mill and a second rolling mill for reinforced steel (rebar).
In October last year, Greensteel placed an order with Italy-based Danieli for fabrication of a single reinforced steel rolling mill.
Delivery of the infrastructure is expected by late 2026 or early 2027, Greensteel said.
Greensteel president and executive director Mena Ibrahim signed the contract at an event in Adelaide today.
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“Danieli is the world’s leading provider of advanced, high-technology steelmaking infrastructure,” Ibrahim said.
“Bringing their expertise to Australia will immediately position this country among the ranks of the most advanced steel suppliers globally.
“We have agreed on an expedited delivery timetable with Danieli that will allow us to bring our steelmaking capability onstream within two years.”
He said the project would create more than 1500 permanent jobs and 2500 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,” he said.
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The facility would be able to produce ultra-long sections of steel required for high-speed rail – a product currently not made in Australia.
The output would be four times that of Whyalla’s existing capability, Greensteel said, but on a smaller plot of land; just 70 hectares compared to Whyalla’s 1000-hectrare footprint.
Further, the DRI plant can operate on hydrogen rather than coking coal to refine magnetite into iron pellets, Greensteel said.
“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.”
Danieli Group CEO Giacomo Mareschi said the company was excited to partner with Greensteel.
“From the very beginning we have been impressed with the boldness of Greensteel’s vision and their commitment to the industrial decarbonisation agenda,” Mareschi said.
“We look forward to delivering on this commitment and bringing world-leading steelmaking capability to Australia.”
