As part of POSCO’s strategy to achieve carbon neutrality by 2050, the South Korean company actively participates in activities to secure low carbon steel raw materials in Australia.
Hot briquetted iron (HBI) is a product obtained by casting direct reduced iron (DRI), which is reduced by removing oxygen from iron ore, into briquette form.
It is an essential raw material for producing high quality steel during electrical operations. POSCO is advancing the introduction of an electric furnace for the gradual transition to a carbon-neutral production system, so it is important to have a stable supply and demand of high-quality HBI.
On the 30th of last month, Western Australia’s Prime Minister Mark McGowan visited POSCO on his first business agenda and talked with Jeong-woo Choi, CEO of POSCO Group, about future new business cooperation, such as cooperation in investments in hydrogen and basic minerals.
Next, Yong-soo Kim, Director of POSCO’s Purchasing and Investment Division, visited Western Australia for three days, and solicited active cooperation and support for POSCO’s HBI project in Western Australia through follow-up meetings at the country level. I work with key government officials.
Since last year, POSCO has set a plan to produce HBI, a raw material processed from iron ore, in Australia and has been conducting feasibility studies.
In May last year, POSCO applied to the Western Australian government for a lease of land in the Boodarie Strategic Industrial Area (Boodarie SIA) to promote the HBI project in Western Australia.
In late December, the land allocation was approved by the Western Australian Government and with the land now secured, the full-scale project is expected to take place shortly.
POSCO expands its production capacity
POSCO thanked the government for approving the Boodarie Strategic Industrial Area (Boodarie SIA) allocation for the HBI project, while requesting the Western Australian government’s continued cooperation, including expedited license approval and infrastructure support, for the success of the project.
“Western Australia is a strategically very important region in sourcing raw materials for POSCO Group’s future businesses such as hydrogen, lithium and nickel, as well as HBI. POSCO Group will lead the era of green steel in Western Australia” said Yong-soo Kim, Head of POSCO’s Purchasing and Investment Division.
“We will ensure competitiveness by promoting long-term and stable HBI projects, and will 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 stated: “POSCO’s green steel project in Western Australia is very important for the global reduction of carbon emissions and is in line with the government’s long-term development plan in regarding manufacturing using Western Australian resources. The government will actively support this and we look forward to the success of the project through mutual cooperation.”
In addition, Director Kim visited and inspected the Boodarie Strategic Industrial Area (Boodarie SIA) site, where the HBI plant, port facilities and nearby iron ore mines are planned to be built.