The companies will explore the development of a pilot electrosmelting facility (ESF) in Australia
Mining companies Rio Tinto and BHP Group will team up with Australian rolled steel producer BlueScope Steel to explore the development of Australia's first electric pilot smelter (ESF) to produce green pig iron. This is stated in their joint statement.
The cooperation aims to demonstrate that pig iron production from Pilbara ore is possible using renewable energy in combination with direct reduced iron (DRI) technology.
“If successful, this could help open a potential pathway to near-zero greenhouse gas production for steel mills that rely on Australian iron ore,” the statement said.
The parties will evaluate several locations in Australia to host the proposed pilot production. They will also consider certain factors such as support infrastructure, available labor, access to target industries and supply chain partners, and suitability for operational testing.
The pre-feasibility study work program is expected to be completed by the end of this year. If approved, the pilot plant could be commissioned as early as 2027.
“By combining our knowledge and experience, we hope to help accelerate the transition of steel mills using Pilbara ores to near-zero emissions technologies. Technologies that are compatible with renewable energy sources and scalable to hundreds of millions of tonnes of steel production will be a significant step in preparing the Pilbara region's ore and the world for a low-gas future greenhouse,” commented BHP Western Australia Iron Ore (WAIO) Asset President Tim Day.
According to Tânia Archibald , CEO of BlueScope, one of the potential objectives of the project could be to produce commercial volumes of products that could then be supplied to steel producers in Asia. However, the pilot project is expected to last several years, so it is unlikely that this stage will happen before the 2030s.
As the GMK Center previously reported, the long-term strategies of large mining companies diverge in the context of the decarbonization of steel production, according to the IEEFA study. Three of the world's four largest mining companies – Vale, Rio Tinto and Fortescue – are increasingly focused on supplying high-quality iron ore that is compatible with hydrogen-based direct reduced iron (DRI) production. At the same time, BHP continues to believe in carbon capture, use and storage (CCUS) technologies.
