Sydney-based Greensteel Australia has announced it had placed an order with leading global steelmaking infrastructure group Danieli Group to purchase stages two and three of its proposed ultra-low-carbon steel mill.
The order, valued in excess of $1.6 billion, 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 and will mark a crucial milestone in Greensteel’s 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,” Ibrahim said.
“We have agreed on an expedited delivery timetable with Danieli that will allow us to bring our steelmaking capability onstream within two years. This will bring our steelmaking capability onstream within two years, creating over 1,500 permanent jobs and 2,500 jobs during construction. These are critical steps forward, especially given the uncertainty caused by the collapse of the existing steel works 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. From the very beginning we have been impressed with the boldness of Greensteel’s vision and their commitment to the industrial decarbonization 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 1,000-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.
“Greensteel’s proposed mill provides a clear way forward for the region. With the existing steelworks in Administration, we believe our mill can be built in parallel, enabling a smooth transition for the workforce at the conclusion of that process. This is vital for the people of Whyalla and the local community.”,” he said.
Greensteel’s sister company Reosteel, based in Sydney, is a well-established manufacturer of finished steel products for the construction industry.
