Australia’s iron ore sector could be positioned for a major shift as research into low-emissions steelmaking gathers pace, with CSIRO highlighting new pathways to process Pilbara ores in a decarbonised metals supply chain.
In a new analysis of the nation’s green metals potential, CSIRO researchers believe the move toward low-carbon steel and aluminium production could significantly expand the value derived from Australia’s resources sector, particularly through downstream processing rather than bulk ore exports.
CSIRO group leader for green metals production Keith Vining said the challenge lies in the chemistry of Pilbara ores which typically contain between 55 and 62 per cent iron.
“Pilbara iron ores are challenging materials in existing low carbon iron-making processes,” Vining said.
“Making metals is an energy intensive business.”
The research focuses on how Australia’s lower-grade Pilbara iron ore can be adapted for emerging direct reduced iron (DRI) and hydrogen-based steelmaking routes.
Traditional DRI pathways generally require ore grades above 67 per cent iron, creating a technical hurdle for Australian producers seeking to participate in low-emissions steel supply chains.
Rather than waiting for entirely new technologies, CSIRO is examining whether existing DRI systems can be modified to accommodate Australian ore characteristics.
“We want to use existing technologies because the pathway for brand new technologies is so much longer,” Vining said.
“Is it doable? Theoretically, yes, absolutely it is. But we need a lot of other things to come together to pull it off.”
The work forms part of a broader national push through the Green Metals Innovation Network, a $10 million federal initiative established in 2025 to coordinate research, industry collaboration and commercialisation pathways.
By processing ore into green iron or other value-added products domestically, the CSIRO team predicts Australia could strengthen its position in global metals supply chains while supporting industrial decarbonisation targets across Asia-Pacific markets.
However, significant infrastructure constraints remain.
Vining said large-scale renewable energy generation, hydrogen production capacity, processing plants and logistics infrastructure would all be required to support a commercial green metals industry in Western Australia.
“We’re going to need a renewable energy network at a scale that simply does not exist at the moment,” he said.
For the bulk handling and materials movement sector, the implications are substantial.
A transition toward domestic green iron production would likely increase demand for advanced conveying systems, port upgrades, bulk storage, materials processing infrastructure and integrated logistics solutions across the Pilbara and downstream industrial precincts.
Near-term projects are already progressing, including gas-based direct reduction plants designed to transition to renewable hydrogen as costs decline.
“Using that process is actually 50 per cent less CO₂ intensive than using solid carbon in a blast furnace,” Vining said.
Vining said these bridge technologies may provide a practical pathway for bulk commodity producers and heavy industry operators seeking to reduce emissions while maintaining production scale.