POSCO to secure low-carbon steel raw materials in Australia
As part of POSCO’s strategy to achieve carbon neutrality by 2050, POSCO is actively engaged in activities to secure low-carbon steel raw materials in Australia.
Hot Briquetted Iron (HBI) is a product made by molding Direct Reduced Iron (DRI), which is reduced by removing oxygen from iron ore, into a briquette shape. It is an essential raw material for producing high-quality steel during electric d operations. POSCO is moving forward with the introduction of an electric furnace for a phased transition to a carbon-neutral production system, so a stable supply and demand of high-quality HBI are important.
On the 30th of last month, Premier of Western Australia Mark McGowan visited POSCO on his first business schedule and discussed with Jeong-woo Choi, CEO of POSCO Group about future new business cooperation, such as investment cooperation in hydrogen and core minerals.
Then, Yong-soo Kim, POSCO’s Head of Purchasing and Investment Division, visited Western Australia for three days from the 8th to the 10th and asked for active cooperation and support for POSCO’s HBI project in Western Australia through follow-up working-level meetings with key government officials.
Director Kim met with Roger Johnston, CEO of Pilbara Ports Authority, Bill Johnston, Minister for Mines and Petroleum; Energy; Corrective Services; Industrial Relations of Western Australia, and Rebecca Brown, Director General of the Department of Jobs, Tourism, Science and Innovation (JTSI) of Western Australia in Perth. On the 10th, he met with Roger Cook, Deputy Premier of Western Australia, and Dean Mudford, the Chief Operations Officer at DevelopmentWA.
Since last year, POSCO has established a plan to produce HBI, a raw material processed from iron ore, in Australia and has been conducting feasibility studies. In May of last year, POSCO applied for a land lease in the Boodarie Strategic Industrial Area (Boodarie SIA) to the Western Australian government to promote the HBI project in Western Australia. At the end of December, the site allocation was approved by the Western Australian government and as the site is secured, the full-scale project is expected to be carried out soon.
POSCO thanked the government for approving the allocation of the Boodarie Strategic Industrial Area (Boodarie SIA) for the HBI project while requesting continued cooperation from the Western Australian government, including rapid approval of licenses and infrastructure support, for the success of the project. “Western Australia is a strategically very important region in procuring raw materials for POSCO Group’s future businesses, such as hydrogen, lithium, and nickel, as well as HBI. POSCO Group will lead the green steel era in Western Australia,” said Yong-soo Kim, POSCO’s Head of Purchasing and Investment Division. “We will secure competitiveness by promoting stable and long-term HBI projects, and contribute to the revitalization of the economy and the advancement of local industries in Western Australia,” he added.
Roger Cook, Deputy Premier of Western Australia also said, “POSCO’s Western Australia Green Steel Project is very important for global carbon reduction and is in line with the government’s long-term development plan in terms of manufacturing using Western Australia’s resources. The government will actively support it and we look forward to the success of the project through mutual cooperation.”
In addition, Director Kim visited and inspected the site of the Boodarie Strategic Industrial Area (Boodarie SIA) where the HBI plant is planned to be built, harbor facility, and nearby iron ore mines on the 9th.
