Australia’s predicted mineral wealth, with a report by Bloomberg New Energy Finance warning low-quality ore producers in the Trans-Tasman nation. In the report, titled Decarbonising Steel: A Net-Zero Pathway, the consultancy highlighted different ways of leading the green revolution in the steel industry, enabling the sector wean itself off fossil fuels.
According to the report, an estimated $US278 billion is required in extra investment for the industry’s transition to net zero emissions, which would largely involve the move to electric arc furnaces. These furnaces typically require iron ore pellets of high-grade as feedstock, which poses a significant threat to steelmakers in Australia, unless they adapt to these developments. “There is a limited amount of high-grade ore currently being produced, mostly in the Americas, Europe and the Middle East, though there are good quality reserves in South Africa, India, Russia and Brazil,” the report read.
“Lower-quality ore producers in Australia will need to further refine their product in order to make it suitable for hydrogen [electric arc furnaces], potentially raising production costs,” it added. “This issue could impede the uptake of hydrogen direct reduction technology, or conversely it could result in iron ore production and possibly green steelmaking capacity moving closer to higher-grade ore producers.”
