Reuters reported that global mining company Rio Tinto has raised concerns about the feasibility of developing the green steel industry in Australia, pointing to the lack of sufficient economic incentives to support efforts to decarbonize steel production.
The company explained that implementing such projects in Australia faces significant challenges, most notably the high construction costs, which make global competitiveness more difficult.
Although Australia is the world’s largest exporter of seaborne iron ore, its ore quality is low and cannot be directly processed to produce steel using renewable energy. For this reason, the government is working to strengthen the country’s position as a reliable exporter of green minerals.
In this context, last February Australia launched a new investment fund called the “Green Steel” Fund, worth AUD 1 billion (USD 636 million), aimed at supporting clean steel production projects, developing supply chains, and encouraging large-scale private investments.
It is worth noting that BHP had previously expressed a similar view, stressing that the cost of developing this industry in Australia is extremely high and that investment returns may not cover expenses. These statements came from Geraldine Slattery, CEO of BHP Australia, during her participation with Prime Minister Anthony Albanese in his visit to China, which also included CEOs of other mining companies. Albanese emphasized the importance of enhancing cooperation between the two countries in the field of green steel.
