Key facts
- GreenSteel Australia (GSA) will invest A$500 million ($347 million) in the nation's first all-electric steel mill.
- The mill, located in Mayfield North, Newcastle, New South Wales, is slated to commence operations in January 2028.
- It will have a production capacity of up to 600,000 tonnes per year of finished steel.
- The facility will utilize electric induction furnace (EIF) technology, eliminating the use of fossil fuels.
- The project is influenced by the Australian government's Future Made in Australia agenda.
Private metals developer GreenSteel Australia (GSA) is set to invest A$500 million ($347 million) in constructing Australia's inaugural steel mill powered entirely by electricity. The facility, slated for operation in January 2028, will be located at Mayfield North in Newcastle, New South Wales.
The mill is projected to produce up to 600,000 tonnes of finished steel annually, catering to the nation's housing, transport, and energy sectors. This development marks the first new steel mill in Australia in over three decades and distinguishes itself by operating without any gas, relying solely on electricity through electric induction furnace (EIF) technology.
The chosen site previously housed BHP's Newcastle Steelworks, which ceased operations in 1999. A GSA spokesperson confirmed that the proposed works align with the site's existing approved use for steel fabrication.
GSA is currently finalizing detailed design plans and intends to submit a development application shortly. The company also has plans for a second stage of development at the Mayfield site, which will be announced in the coming weeks.
Site refurbishment is scheduled to commence at the end of 2026. Crucial equipment, including the EIF, is expected to be delivered from October 2027 by Italian firm Danieli. Initially, the mill will produce reinforcing bar, with plans to expand into wire rod and coil production later. The feedstock will be steel billets, likely sourced from Southeast Asia.
The project's investment was partly influenced by the Australian government's Future Made in Australia (FMIA) agenda. While GSA has not received direct government funding for the Mayfield project, the federal government has allocated A$1 billion through its Green Iron Investment Fund (GIIF) to support green iron projects. The GIIF aims to stimulate private investment in lower-carbon intensive production methods. Half of the GIIF, A$500 million, was previously allocated to support the transformation of the Whyalla steelworks into a green steel manufacturer. The remaining A$500 million is available to other Australian applicants, with frontrunners yet to be announced.