The Australian government has allocated AUD 1 billion (USD 636 mln) to support the development of green iron manufacturing and its supply chains, according to an official statement.
Of the total allocation, up to AUD 500 mln (USD 318 mln) will go toward transforming the struggling Whyalla steelworks, securing local jobs and aiding the energy transition. Whyalla’s owner, Sanjeev Gupta’s GFG Alliance, owes creditors tens of millions of dollars, including the state government and local subcontractors. Earlier this week, the South Australian government placed the Whyalla steel mill and its associated mines into administration, appointing consulting firm KordaMentha as administrator
The remaining AUD 500 mln (USD 318 mln) will be available nationwide for both existing facilities and new greenfield projects to add value to Australia’s iron ore industry.
Australia, the world’s largest iron ore producer, earned over AUD 100 bln (USD 64 bln) in export revenue in 2023-24, with the broader iron and steel sectors supporting more than 100,000 jobs.
The investment in green iron and steel aims to boost domestic employment, enhance value-added processing, and secure long-term demand for Australian iron ore as the global steel industry shifts toward lower-emission production, according to the government’s statement.
1 USD / 1.56 AUD
