POSCO-backed HBI project in Western Australia receives final approval

Thursday, 09 April 2026 15:03:08 (GMT+3)   |   Istanbul

The Western Australian government has granted final approval for the $4 billion Port Hedland Iron Project, which will include a pellet plant and hot briquetted iron (HBI) facility near the Port of Port Hedland. The project is backed by South Korea’s POSCO, Japan-based Marubeni, and Taiwan’s China Steel Corporation.

The facility will utilize MIDREX direct reduction technology, which uses natural gas instead of coal, enabling significantly lower greenhouse gas emissions compared to traditional blast furnace routes.

Integrated pellet and HBI production

Located in the Boodarie Strategic Industrial Area, approximately 10 km southwest of Port Hedland, the project will include an iron ore processing complex consuming around 3-3.5 million mt of iron ore annually. Most of the pellets produced will be used internally to generate approximately 2 million mt of HBI per year, while around 700,000 mt of pellets will be exported directly from Port Hedland.

The project will also incorporate hydrogen production and storage facilities to support processing operations, aligning with longer-term decarbonization strategies. Construction is expected to take around 2.5 years, while the project’s operational lifespan is projected to reach up to 101 years, positioning it as a long-term strategic asset in the global iron and steel supply chain.

ElifKefeli
Elif Kefeli
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I graduated from Yeditepe University’s Department of Translation and Interpreting Studies in 2017. I joined SteelOrbis in 2021, where I currently work as a content specialist. I am writing news reports and industry-related content with a special focus on decarbonization, green steel, sustainability, and recycling.

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