Newcastle could be making steel again by early 2028, with Greensteel Australia announcing a $500 million investment in an electric-powered mill on the former BHP steelworks site at Mayfield North.

ABC News reports the company has secured a 70,000-square-metre parcel of the old steelworks and plans to produce up to 600,000 tonnes of finished steel per year once fully operational. The project is still subject to approval, with early works expected to begin before the end of 2026.

The plant will initially process imported steel slabs through an on-site rolling mill rather than producing raw steel from scratch. The longer-term plan, according to Advisory Group chair Professor Ross Garnaut, is to bring the entire production chain to Newcastle, from iron ore through to finished steel. On the question of power, the company has not yet decided between green hydrogen and induction steelmaking, both of which would avoid natural gas.

“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. He said the first stage would create “a couple of hundred jobs in Newcastle, doing what Newcastle proves it does very well.”

Greensteel says the mill will directly employ more than 200 full-time workers, including fitters, electricians, crane drivers, metallurgists and engineers, with additional jobs expected during construction and through Hunter region supply chains. The company also says the extra local supply should reduce the construction industry’s dependence on imported steel and, over time, help bring steel prices down for Australian builders.

The announcement comes at a sensitive moment for the Hunter region. Workers at the nearby Tomago Aluminium smelter are facing uncertainty over that plant’s long-term future, and several Upper Hunter coal mines have started announcing closure timelines. BHP’s steelworks closed in 1999, shedding more than 13,000 jobs, and the city has carried the “steel city” tag without a steel mill ever since. NSW Premier Chris Minns also announced last week that train manufacturing will return to Newcastle through a $12 billion plant, giving the region two significant industrial commitments in quick succession.

For tradies in building and construction, the key number to watch is 600,000 tonnes of annual output. If the plant delivers, local supply of structural steel products could ease some of the price pressure and lead times that have dogged construction projects in recent years. Whether that materialises depends on the project clearing approvals and early works getting under way on schedule later this year.

Frequently asked questions

When will the Newcastle Greensteel mill open?

Greensteel Australia says the plant is planned to be operational by January 2028, with early works expected to begin before the end of 2026, subject to planning approval.

How many jobs will the Newcastle steel mill create?

The company says the mill will directly employ more than 200 full-time workers, including fitters, electricians, crane drivers, metallurgists and engineers, with additional construction and supply-chain roles expected.

Will the mill produce steel from scratch or process imported steel?

Initially the plant will process imported steel slabs through an on-site rolling mill. The longer-term plan is to bring the full production chain to Newcastle, from iron ore through to finished steel.

Could the mill lower steel prices for Australian builders?

Greensteel says increased local supply should reduce dependence on imported steel and, over time, help bring prices down for the construction industry, though this depends on the project clearing approvals and hitting its output targets.

Sourced from ABC News. Original article.