Greensteel Australia to build next‍-‍generation steel mill

Sydney-based Greensteel Australia (Greensteel) has announced it has placed an order, valued in excess of $1.6 billion, to purchase equipment for its proposed ultra-low-carbon steel mill.

The order placed with global steelmaking infrastructure group Danieli Group 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. The company says this will mark a crucial milestone in its 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,” he said. “We have agreed on an expedited delivery timetable with Danieli. This will bring our steelmaking capability online within two years, creating over 1500 permanent jobs and 2500 jobs during construction. These are critical steps forward, especially given the uncertainty caused by the collapse of the existing steelworks 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,” said Danieli Group CEO Giacomo Mareschi. “From the very beginning we have been impressed with the boldness of Greensteel’s vision and their commitment to the industrial decarbonisation 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 1000-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.