Environmental Protection Authority backs plan to process iron ore in Port Hedland

Port Hedland could soon be more than just a shipping hub, with plans to process local iron ore given the green light by WA’s environmental watchdog.

The Environmental Protection Authority has recommended approval for Port Hedland Iron Pty Ltd’s proposal to build a downstream processing plant at the Boodarie Strategic Industrial Area, about 10km from town.

The facility would turn Pilbara ore into iron pellets and hot briquetted iron for export, using cleaner direct-reduction technology and paving the way for future hydrogen use.

Port Hedland mayor Peter Carter welcomed the proposal, saying it marked a new chapter for the region.

“This project is a big step toward diversifying our economy and creating a wide range of new jobs for the community,” he said.

“Having POSCO here sends a clear message to other industries that Portland is the place to invest and do business.”

“Everything we dig up — gold, lithium, iron — should be manufactured and processed right here in Port Hedland to add value.”

The EPA report also noted the facility’s potential to support Western Australia’s emerging renewable hydrogen industry.

“The EPA acknowledges that aggregating development proposals within SIAs offer improved environmental benefits by promoting resource efficiency and minimising impacts,” EPA chair Darren Walsh said.

“And the use of the direct-reduction iron technology will result in a significantly reduced rate of associated GHG emissions at start-up in comparison to a conventional blast furnace method fuelled by coking coal, with further reductions expected as hydrogen becomes available.”

The joint venture with POSCO, Marubeni and China Steel Corporation aims to decarbonise the steel manufacturing supply chain by producing low-carbon briquetted iron for export to Asia.

As a facility with expected annual emissions above 100,000 tonnes of CO2-equivalent, it will fall under the Federal Safeguard Mechanism.

The EPA has recommended ongoing reporting on carbon abatement measures, including updates on hydrogen integration.

Public appeals on the report are open until September 8, with Environment Minister Reece Whitby to make the final decision.