The $1 billion Green Iron Investment Fund will boost green iron manufacturing and supply chains. It will do this by supporting early mover green iron projects.
At least $500 million will be open to applicants around Australia. This money will invest in projects that supercharge Australia’s world-leading iron ore industry and add value locally. Up to $500 million will also help support the Whyalla steelworks transformation.
Green metals are pivotal for global decarbonisation and presents Australia with unique opportunities. The Green Iron Investment Fund will let Australia build on its:
- significant iron ore deposits
- existing iron ore supply chain
- renewable energy potential
- high-skilled workforce.
Green iron markets are growing. Our analysis shows global demand projected to reach about 852 million tonnes by 2050 in a net-zero scenario. Acting now positions Australia to capitalise on its comparative advantage and secure a new, thriving market opportunity.
Green iron is a significant opportunity to create a new, multibillion dollar manufacturing industry. The Mineral Research Institute of Western Australia estimates that just one 4.8 million tonnes per year green iron plant could add:
- $85 billion to gross domestic product
- $2.4 billion in real income per year
- create 1,540 full time equivalent jobs.
Australia’s iron and steel manufacturing industry employs around 33,000 people. Combined with alumina and aluminium manufacturing, the metals industry links to 200,000 direct and indirect jobs.
There are promising prospective green iron projects across Australia. These could open up major economic opportunities for regions like the Pilbara and Mid-West regions of WA, Central Queensland and the Upper Spencer Gulf.
The Green Iron Investment Fund will support early mover green iron projects and help overcome the initial capital hurdle of investment. Applications will be subject to an assessment process, including commercial, technical and financial viability.