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Australia Grants Conditional Federal Approval to POSCO-Led A$4.4 Billion Iron Project

The proposed plant would process 3 million to 3.5 million metric tons of ore annually. Its partners have yet to make a final investment decision.

Updated 1 min read
A shiploader transfers iron ore to a bulk carrier at Port Hedland, Western Australia. (AI-generated image / EconoTimes)
A shiploader transfers iron ore to a bulk carrier at Port Hedland, Western Australia. (AI-generated image / EconoTimes)

Australia has granted conditional federal environmental approval for the first stage of a POSCO-led iron project near Port Hedland, while a final investment decision on the A$4.4 billion proposal remains pending.

The Western Australian government values the proposal at A$4.4 billion. The federal environmental approval register records that the decision was made Oct. 6 and published Oct. 15. Western Australia’s Environmental Protection Authority records a separate state approval on Apr. 7.

The federal decision covers stage one. The state and federal records mark separate environmental approval steps, but they do not amount to a final commitment to build; the investment decision remains outstanding.

Project plans call for annual processing of 3 million to 3.5 million metric tons of iron ore. The proposed facility would produce about 2 million metric tons of hot briquetted iron and 700,000 metric tons of iron ore pellets each year.

Port Hedland Iron Pty Ltd plans to begin with natural gas and increase renewable hydrogen use when wider use becomes economically viable. POSCO, Marubeni Corporation and China Steel Corporation are participating as study-phase partners. The project company says its ownership structure has not been finalized.

The Western Australian government cites job creation and lower-emissions iron processing as intended benefits. It says operations are targeted to begin in 2031, while a final investment decision is still pending.

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