Greensteel Australia Proposes Zero-Emissions Steel Mill in Newcastle

Newcastle's historical steel-making identity is set for a rebirth, with an Australian company proposing to build a zero-emissions steel mill on the old BHP steelworks.

Greensteel Australia says it has a 70,000-square-metre site at Mayfield North to build the new mill, capable of producing up to 600,000 tonnes of finished steel once operational, expected to be by January 2028.

The company said it planned to invest $500 million in the plant to produce products for use in housing, transport and energy projects.

"Greensteel Australia expects the extra local supply to reduce the construction industry's reliance on imported steel and, over time, help stabilise and bring down steel prices for Australian builders," a Greensteel spokesperson said in a statement.

However, the plant will initially produce raw steel on site rather than importing slabs, which are then processed in the rolling mill.

Chair of the Greensteel Advisory Group, Ross Garnaut said the goal was to eventually make steel from start to finish in Newcastle.

"The plan is for it to be Australian all the way through from the iron through to the turning of the iron ore into iron metal and then rolling into steel in Newcastle," Professor Garnaut told ABC Newcastle Breakfast.

Professor Garnaut said instead of using natural gas in the rolling process, this plant would use a zero-carbon alternative, with the company yet to decide between green hydrogen and induction steelmaking.

"That will all be done as soon as that can be put in place, but the first step is the rolling," he said.

Industrial identity

Newcastle has historically been dubbed Australia's "steel city", despite BHP closing its steelworks in 1999.

The steelworks, at its peak, employed more than 13,000 people. Its closure led to mass redundancies and redeployments.

"The [new] mill will directly employ over 200 direct full-time staff, including fitters, electricians, crane drivers, metallurgists and engineers, with more jobs created during construction and through Hunter supply chains," a Greensteel spokesperson said in a statement.

The Hunter region's industrial presence remains with coal and aluminium production key employers.

Workers at the nearby Tomago Aluminium smelter are facing uncertainty around its long-term future, while more coal mines in the Upper Hunter are unveiling closure timelines.

NSW Premier Chris Minns last week announced train manufacturing will return to Newcastle, with a $12 billion plant to be built in the region.

Early works on the project are expected to begin later this year.