Australian steel producer GM Steel is progressing plans to build a A$500 million greenfield electric arc furnace (EAF) steel plant in South East Queensland, aimed at utilizing locally generated ferrous scrap to produce reinforcing steel, according to the Australian Steel Institute.
The proposed facility, to be located at Wellcamp Business Park near Toowoomba, is designed to produce 350,000 mt of rebar and spooled coil per year using locally sourced scrap as its principal feedstock. Italian plantmaker Danieli has been selected as the technology partner for the project.
Locally generated ferrous scrap targeted
According to GM Steel, South East Queensland generated close to one million mt of scrap metal in 2024, of which approximately 750,000 mt was exported. The company aims to retain more of this material domestically and convert it into reinforcing steel for the Australian construction and infrastructure sectors. GM Steel stated that the scrap-based EAF process is expected to provide substantially lower carbon emissions and energy consumption compared to conventional blast furnace-based production, while also offering high yields and production consistency.
The selected site provides access to a 110 kV electricity transmission line, water and transport infrastructure and is located close to scrap suppliers and steel distributors. GM Steel evaluated several locations before choosing Wellcamp, citing electricity and water availability, geotechnical conditions, logistics connections and potential for future expansion among the main factors.
First steel production targeted for 2029
The project received development approvals from the Queensland state government and Toowoomba Regional Council in March 2026. Subject to a final investment decision, front-end engineering and design work is expected to continue throughout 2026, followed by the final investment decision in 2027 and a two-year construction period. First steel production is targeted for 2029.
GM Steel stated that the planned capacity was selected to make a meaningful contribution to the Queensland market while remaining aligned with available scrap supplies, electricity requirements and expected product offtake.
