Australia-based steelmaker Greensteel Australia has announced that it will invest A$500 million to build the country’s first new steel mill in more than 30 years. The company has secured the 70,000-square-meter site in Mayfield North and plans to begin operations at the new facility in January 2028.
First all-electric steel mill
According to the statement, the new mill will be the first steelmaking facility in the country to operate entirely on electricity, with no natural gas used anywhere in the production process.
The company said the project marks the return of steel manufacturing to the Hunter region, where steel production was previously centered at the former BHP Newcastle Steelworks.
The mill will have an annual production capacity of 600,000 mt of finished steel for the housing, transport and energy sectors. Rebar will be the first product manufactured at the facility, while wire rod and steel coil are planned for subsequent development stages.
The project is expected to create more than 200 full-time jobs, including positions for fitters, electricians, crane operators, metallurgists and engineers, in addition to employment during construction and across regional supply chains.
Electric induction furnace supplied by Danieli
Greensteel Australia said the mill will utilize electric induction furnace technology, replacing conventional gas-fired furnaces with an electricity-based steelmaking process. The company stated that the process will produce no direct carbon emissions and will enable the facility to operate independently of natural gas supplies.
The main equipment, including the electric induction furnace, will be supplied by Italy-based plant engineering company Danieli. Refurbishment and modernization work at the site is scheduled to begin before the end of this year, with the main equipment expected to arrive from October 2027.
Stage 2 announcement planned
Greensteel Australia said the Mayfield project represents the first stage of its development plans. The second announcement covering Stage 2 of the project is expected to be made in the coming weeks.