Australia Approves $3B Port Hedland Low-Carbon Iron Plant Led by POSCO

Australia's federal government approved the $3 billion Port Hedland Iron Project in Western Australia, a POSCO-led venture that would produce hot briquetted iron using MIDREX direct reduction instead of coking coal. The plant, planned for the Boodarie Strategic Industrial Area near Port Hedland, would process 3 million to 3.5 million tons of iron ore a year into about 2 million tons of HBI and 700,000 tons of export pellets. POSCO holds 51%, with Marubeni and China Steel Corporation at 24.5% each. Environmental approval under the EPBC Act clears a regulatory gate, but the project still needs a final investment decision from the partners. Construction could start in Q1 2027 and first output is targeted for 2031. The facility would run on natural gas initially and add hydrogen production and storage later, which matters because steelmaking accounts for around 8% of global CO2 emissions. The approval is valid to 2088 and the operating life is put at up to 101 years.