Name of the Project
NeoSmelt electric smelting furnace (ESF) pilot plant.

Location
Kwinana Industrial Area, south of Perth, Australia.

Project Owner/s
NeoSmelt, a collaboration between steelmaker BlueScope, and iron-ore producers BHP and Rio Tinto.

NeoSmelt welcomed two new equity participants – Woodside Energy and Mitsui Iron Ore Development – to the NeoSmelt joint venture in June 2025, with the five participants taking equal equity stakes in the joint venture.

Project Description
The pilot plant aims to prove Pilbara iron-ore can be used to produce lower-carbon emissions molten iron using direct reduced iron (DRI)-ESF technology.

The pilot plant will produce 30 000 t/y to 40 000 t/y of molten iron. It will initially use natural gas to reduce iron-ore to DRI, but once operational, the project aims to use lower-carbon emissions hydrogen to reduce iron-ore.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Subject to funding, the project expects a decision to enter feasibility studies in the second quarter of 2025 and is targeting a final investment decision for the pilot plant in 2026, with operations expected to start in 2028.

Latest Developments
NeoSmelt has welcomed federal government Australian Renewable Energy Agency’s (ARENA) support for its planned Western Australian pilot plant.

ARENA has committed A$19.8-million to support a front-end engineering design study, which aims to prove Pilbara iron-ore can be used to produce lower-carbon iron using a DRI-ESF pathway.

The project has now entered the feasibility phase. The feasibility study will help to inform a final investment decision, expected in 2026.

Key Contracts, Suppliers and Consultants
Not disclosed.

Contact Details for Project Information
Rio Tinto, Rachel Pupazzoni, cell +61 438 875 469 or email rachel.pupazzoni@riotinto.com.
BlueScope, Michael Reay, cell +61 437 862 472 or email michael.reay@bluescope.com.
BHP, Jimmy Clothier, cell +61 413 391 031 or email jimmy.clothier@bhp.com.
Woodside Energy, Christine Forster, cell +61 484 112 469 or email christine.forster@woodside.com.