• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Why Australia’s green steel ambitions face reality check from BHP

by July 16, 2025
by July 16, 2025

BHP, a major mining company, has stated that establishing a “green iron” industry in Australia is cost-prohibitive, Reuters said in a report. 

BHP’s declaration comes after Australia and China reached an agreement this week to collaborate on decarbonising the steel supply chain, which accounts for nearly 10% of global emissions.

Geraldine Slattery, BHP Australia’s chief, participated in business roundtables this week in China with Australian and Chinese industry leaders. She stated that the production costs for low-carbon steel are not viable.

Slattery said in a social media post late on Tuesday;

Even with generous policy support, the cost of production (in Australia) would be double that of the Middle East and China – and customers many thousands of kilometres away.

Mining CEOs, including Slattery, joined Australian Prime Minister Anthony Albanese on a recent trip to China. During this visit, Albanese advocated for increased collaboration between Australia and China in the development of green steel. 

The initiative highlights a growing international focus on sustainable industrial practices and the potential for partnerships to drive innovation in the mining and steel sectors, aiming to reduce environmental impact.

Lack of interest

BHP, the world’s largest mining company, expressed a lack of interest in directly producing “green iron ore or steel,” stating that it was not part of its strategy. 

This stance served as a reality check for Australia’s aspirations in the sustainable steel industry, highlighting the significant challenge of gaining full commitment from major global players in transitioning to greener production methods. 

It also underscores the complexity and differing priorities within the industry regarding environmental initiatives.

Australia provides a substantial 60% of China’s iron ore, crucial for its steel industry. 

However, a significant challenge arises from the ore’s low-grade quality. This inherent characteristic means it cannot be directly processed into steel using renewable energy sources. 

Instead, an additional processing step becomes necessary to upgrade the ore, incurring extra costs and resource consumption. 

Green iron, a low-carbon foundation for producing green steel, is created when hydrogen from renewable energy sources or biomass replaces coal in this additional process. 

Widespread commercial adoption of these methods is anticipated no sooner than the next decade.

This dependency on Australian supply, coupled with the need for further refinement, highlights a complex interplay between resource acquisition and sustainable manufacturing practices for China.

Minerals processing industry

Australia aims to establish a robust minerals processing industry, moving beyond its current reliance on raw material exports, which generate approximately A$370 billion ($242 billion) annually. 

This strategic shift seeks to diversify its economy and add value to its abundant mineral resources. 

However, this ambition is significantly challenged by the country’s high power prices and substantial labour costs, which impede the competitiveness and profitability of such an industry. 

Addressing these economic hurdles is crucial for Australia to successfully develop its processing capabilities and enhance its global trade position.

The government committed A$1 billion in February to bolster the manufacturing of green iron and its associated supply chains.

In December, BHP, Rio Tinto, and Bluescope Steel reached an agreement to collaborate on a pilot plant project. 

This plant aims to produce low-carbon iron utilizing renewable energy and direct reduced iron technology within an electric smelting furnace (ESF). The potential operational start date for this initiative is 2028.

A pilot plant for Fortescue is scheduled to produce green iron this year, marking a significant step in their green iron project.

The post Why Australia’s green steel ambitions face reality check from BHP appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Pop Mart shares slide despite rosy profit outlook: here’s why
next post
iPhone Fold: Inside Apple’s supply chain & strategy for the most anticipated device

Related Posts

Should you buy Rolls-Royce stock as it invests...

July 16, 2025

Asian markets open: Nikkei flat, Kospi drops 0.5%...

July 16, 2025

Sensex, Nifty open muted on July 16 amid...

July 16, 2025

iPhone Fold: Inside Apple’s supply chain & strategy...

July 16, 2025

Pop Mart shares slide despite rosy profit outlook:...

July 16, 2025

Europe markets open: Stoxx 600 dips 0.2% as...

July 16, 2025

UK’s FCA fines Barclays £42 million for ‘significant’...

July 16, 2025

Renault shares tumble after profit warning, leadership shake-up;...

July 16, 2025

Intellistake announces exclusive partnership with Singularity Venture Hub

July 16, 2025

Rocket Lab jumps 60% in last month as...

July 15, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Inflated Worries: Don’t Sweat June’s Hot Prices

    July 16, 2025
  • The Real Debt Threat: Government Spending, Not Tax Cuts

    July 16, 2025
  • The Real Debt Threat: Government Spending, Not Tax Cuts

    July 16, 2025
  • Should you buy Rolls-Royce stock as it invests in expanding US manufacturing?

    July 16, 2025
  • Asian markets open: Nikkei flat, Kospi drops 0.5% after US House blocks crypto bills

    July 16, 2025
  • Sensex, Nifty open muted on July 16 amid new US tariff threats, Fed remarks

    July 16, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,847)
  • Editor's Pick (184)
  • Investing (185)
  • Stock (1,215)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Apple prevents opponents from viewing key data...

March 13, 2025

From Wall Street to GOP, Trump tariffs...

April 7, 2025

Asian stocks mixed ahead of US Fed...

March 19, 2025