Understanding the demand for Green Steel, page-348

Why magnetite will be crucial to Australia's green steel transition | RenewEconomy



With available technologies, the steel industry’s transition towards DRI requires a significant supply of high-grade iron ore, but the typical hematite-goethite ores found in the Pilbara region are not suitable for beneficiation to higher grades.Additionally, previous ironmaking efforts by miners in this region, such as BHP’s Boodarie iron plant and Rio Tinto’s HIsmelt, have been unsuccessful. However, the emergence of new magnetite mines could transform the current landscape of the iron ore mining industry.

The lucrative mining operations in the Pilbara is one of the reasons that have deterred Australian miners from investing more in magnetite mines, which typically need more investment compared with hematite direct shipping ores (DSO) mining.The growing momentum of the transition in the steel sector has prompted Australia’s iron ore industry to actively participate in the emerging high-grade iron ore market by further exploring magnetite iron ore.

Magnetite is enabling a steel technology transition in South Australia

Liberty Steel announced on 4 March it would phase out its existing blast furnace at Whyalla Steelworks and build a new DRI-EAF. It will initially consume natural gas and hydrogen before shifting completely to green hydrogen. The company has already tested the possibility of producing DR-grade iron ore pellets from existing magnetite ores in South Australia.

Conversely, the Australian biggest steelmaker, BlueScope, plans to reline its No.6 blast furnace at Port Kembla steelworks. BlueScope’s recommitment to blast furnace-based steelmaking risks making it look like a climate laggard, particularly given the transition planned at Whyalla. While BlueScope maintains green steel technologies are not yet ready, other steelmakers in Europe, as well as producers in the Middle East and Northern Africa (MENA) and now Whyalla, the only other Australian primary steelmaker, have already announced a transition to DRI-based steelmaking.

To ensure meeting carbon emissions targets, and manage scope 3 emissions associated with iron ore mining, Australia should maximise investment in magnetite mines both for domestic use and export. In the future, Fortescue’s magnetite could be shipped as DR-grade ores as the global transition away from blast furnaces and towards lower-carbon DRI-based steelmaking accelerates. Fortescue has a target to reduce its Scope 3 emissions to net zero by 2040."