Govt approves POSCO’s USD 3 bln low-emissions iron project in Port Hedland

The Australian government has approved POSCO Holdings’ plans to develop a low-emissions iron processing plant at Port Hedland in Western Australia, with an estimated investment of USD 3 bln.

The proposed facility in the Pilbara region will have an annual production capacity of 2 mln tons of iron. The project aims to expand domestic iron processing in Australia, the world’s largest iron ore exporter, while supporting efforts to reduce emissions and add value to mineral resources.

The plant, known as Port Hedland Iron, will initially use natural gas instead of coal to reduce emissions intensity. Green hydrogen could eventually replace natural gas as the production process is further decarbonized.

A final investment decision remains subject to approval from POSCO’s project partners, including Japan’s Marubeni Corporation and China Steel Corporation. The venture is targeting first production in 2031.