The Federal Government has announced a billion-dollar Green Iron Fund to support sustainable iron manufacturing.
The move follows the announcement of a $2.4 billion package to support the Whyalla Steelworks. Up to $500 million of the Green Iron Fund has been earmarked to support the Whyalla steelworks transformation, shoring up local jobs and helping with the energy transition.
Prime Minister Anthony Albanese said the investment is good for Australian workers and good for Australian business.
“We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste.”
At least $500 million will be open to applicants around Australia, and accessible fr both existing facilities and greenfield projects that can supercharge Australia’s iron ore industry by adding more value.
The fund has been designed in close consultation with industry through the Green Metals Expert Panel.
Minister for industry and science, Ed Husic, said the move is backing green metals producers as the world moves towards net zero.
“The Green Iron Investment Fund will enable Australia to take advantage of our existing iron ore supply chain, renewable energy potential, world class research and high-skilled workforce,” Husic said.
“Through this $1 billion fund we’re supporting industrial diversification, productivity and economic growth, for a future made in Australia.”
The investment aims to provide more jobs and add value to onshore manufacturing. In addition, Australia is the world’s largest producer of iron ore, earning more than $100 billion in export income in 2023-24, with the wider iron and steel sectors supporting over 100,000 direct and indirect jobs.
Green metals are pivotal for global decarbonisation, with iron and steel production responsible for eight per cent of global emissions, with iron accounting for up to 90 per cent of these emissions.