Green Steel Mill Planned for Australia's 'Steel City'

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Greensteel Australia has announced plans to build a 600,000 tonnes per year green steel plant in Newcastle, New South Wales (NSW).

Steel Industry Rebirth for Newcastle

The first new steel mill in Australia for 30 years is to be built in Newcastle, New South Wales (NSW) by Greensteel Australia. 

The company has bought the historic 70,000-square-meter site of the former BHP Newcastle Steelworks in Mayfield that was shut down in 1999 and plans to build a new steel mill powered by electricity rather than natural gas. The company has announced that it will spend AUD$500 million (US$347 million) to construct the zero-emissions mill with commissioning expected in 2028. According to Industrial Info Resources data, there are three projects planned for the site, including expansions, worth more than US$1.1 billion. Newcastle was known as the country's steel heartland, where the original BHP Newcastle Steelworks ran from 1915-1999. 

"Australia stopped building steel mills a generation ago," said Greensteel Australia Chief Executive Officer Romany Ibrahim. "Thanks to the leadership of the NSW and Federal Governments, we're building again. They've made it possible to bring manufacturing home to Newcastle, where Australian steelmaking began and where it never should have left."

The Project

Refurbishment and modernisation at the site will begin before the end of this year. The main equipment will be supplied by Italian firm Danieli. In mid-2025 Greensteel placed a AUD$1.6 billion order with Danieli for 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). It followed on from an initial order in late 2024 for the fabrication of a single reinforced steel (rebar) rolling mill. The main equipment, including the all-electric-induction furnace, is expected to arrive from October 2027, and the mill is expected to be operational by January 2028. Reinforcing bar will be the mill's first product, with wire rod and coil planned for future stages. The mill will directly employ over 200 full-time staff. 

"Every tonne of steel we forge at Mayfield is a tonne Australia doesn't have to import," Greensteel Australia Chairman Ross Garnaut said. "That means more reliable supply and better prices for builders, and because there is no gas anywhere in our process, it also means lower embodied carbon in the homes and infrastructure this country needs. That's a win for builders and home buyers, and a win for the Hunter."

Troubled Times for Australian Steel

Industrial Info Resources has been tracking the ongoing problems at Australia's most important steelworks at Whyalla, which was placed into administration by the South Australian government last year. Employing 1,000 workers, it was responsible for producing 75% of the country's structural steel in 2024 and is the only Australian producer of long steel products. For additional information, see March 21, 2025, article - Struggling Whyalla Steelworks Hit by Stoppage. The government has spent billions of dollars keeping it operational. Numerous bidders are seeking to take over the plant and there are plans to replace the existing coal-fired blast furnace with a lower-carbon electric arc furnace (EAF) and associated infrastructure. Industrial Info Resources is tracking eight projects worth US$1,1 billion, currently on hold, for the modernisation of the facility. 

Key Takeaways

• The first new steel mill in Australia for 30 years is to be built in Newcastle, New South Wales (NSW).
• It will produce 600,000 tonnes per year of zero-emissions steel. 
• Industrial Info Resources is tracking three projects planned for the site, worth more than US$1.1 billion. 

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).