GFG Alliance on cusp of new industrial revolution

A new focus on magnetite is the key to GFG Alliance’s plan to produce carbon-neutral steel by 2030

SIMEC Mining environmental scientist Victoria McCarron. Picture: Dean Martin

The transition from hematite to magnetite is placing the GFG Alliance-owned Whyalla Steelworks at the heart of a new industrial revolution.

GFG’s mining arm, SIMEC Mining, is expanding the production of magnetite iron ore at its mines in the Upper Spencer Gulf, with the plan to harness renewable energy and hydrogen to produce carbon-neutral steel by 2030.

The metals industry is facing a trilemma. Steel and aluminium manufacturing accounts for more than 10 per cent of global CO2 emissions. As economies develop, consumption of steel and aluminium will double in the next 30 years and many countries are legislating to be carbon neutral by 2050. With the world no longer willing to tolerate pollution from the coal-based steel industry, GFG is turning to high-quality magnetite iron ore to produce hydrogen steel with zero emissions.

SIMEC Mining environmental scientist Victoria McCarron says the transition from coal to magnetite is changing the narrative around her home town of Whyalla. “Last year we closed the coke ovens – a single piece of infrastructure that was burning coal and making it into coke – so we’re already in the process of shifting towards being a greener site,” she says. “If we are using a resource that will allow for the production of green steel, and the use of hydrogen energy to produce that, then it will ultimately help to reduce carbon output, which will change people’s perceptions.”

McCarron – whose remit covers the Iron Knob, Iron Baron and South Middleback Ranges mines where she is responsible for ensuring environmental compliance within the Programs for Environment, Protection and Rehabilitation regulations – is enthusiastic about the opportunities magnetite mining will bring. “I directly help with the magnetite expansion with regard to the ecological understanding and implications,” she says. “Magnetite is much more energy efficient and a better product. If the project takes off, we’re looking at another 20 years of mining out there, so that’s long-term security and opportunities for not just people here but people throughout the state and the country.”

McCarron took up the role at SIMEC Mining in 2022 after a decade of university study in Adelaide. “It was such a great opportunity for me – it opened doors that I didn’t think were possible,” she says. “A couple of years ago, I didn’t think I could buy a house but last year I did and it is much more affordable than in Adelaide.”

Living in Whyalla has also opened up doors for changes in lifestyle. “You don’t have to think, ‘Oh, I have an hour’s commute to get to work’. For the most part it is a simple, five-minute drive to get anywhere. Catching up with people, it’s just one or two messages rather than the three months-long group chat trying to plan a hike, and you can spend weekends doing sport. There is such a community here that you can’t really get in cities. You know everyone. I feel so much more relaxed here.”

As one of the few places in the world with the potential to develop large-scale magnetite mining, Whyalla looks set to open doors to employment for generations of workers, both local and new to the region. “There are so many different projects that there is going to be a world of jobs, with all different skillsets required,” McCarron says.

“I think the locals are excited. There will still be job opportunities for people who live here so it adds to their security. It’s also going to bring people in, which will lead to developments in infrastructure and those flow-on effects for the economy. I’m definitely excited.”

State Prosperity Project benefits

Upper Spencer Gulf map.

WHYALLA HYDROGEN JOBS PLAN

A world-leading renewable hydrogen power station, electrolyser and storage facility will be built near Whyalla. More than 70 per cent of South Australia’s energy currently comes from renewable sources. And with the world’s largest hydrogen plant and a skilled local workforce, these resources can be harnessed to create renewable hydrogen. The project will be operational in early 2026 and is expected to activate thousands of jobs.

Benefits: Support South Australia’s clean energy transition and activate other hydrogen projects in development.

PORT BONYTHON HYDROGEN EXPORT HUB

Building on the existing hydrocarbon-based export facility, Port Bonython is anticipated to become SA’s first large-scale clean hydrogen production precinct for both export and domestic markets. The project is an integral part of South Australia’s first-mover strategy to enter the global hydrogen market.

Benefits: Large-scale export terminal for hydrogen. $140 million investment for the development of common user infrastructure. Support local industry and attract new business investment.

NORTHERN WATER PROJECT

The South Australian Government is progressing investigations into the development of the Northern Water project, a climate-independent water supply for the Far North, Upper Spencer Gulf and eastern Eyre Peninsula regions. Featuring a 260ML/day desalination plant and a 600km pipeline network, Northern Water would distribute water across the region to support regional industries, including the hydrogen industry and the state’s copper and other critical mineral mining activities in the far north of SA.

Benefits: Reduce reliance on existing water resources such as the River Murray and the Great Artesian Basin and support clean hydrogen and green steel production, as well as mining.

WHYALLA STEELWORKS

South Australia is leading the green steel charge by working with GFG Alliance, the owner of the Whyalla Steelworks, to establish a globally competitive and sustainable industry. GFG has an ambition to become a carbon-neutral steelmaker by 2030, transitioning the Whyalla steelworks away from the traditional blast furnace and commissioning a state-of- the-art electric arc furnace powered from renewable energy. As part of the transformation, a direct reduction iron plant will be fed by GFG’s own plentiful (more than 4 billion DRI-quality magnetite ore, sourced from the nearby Middleback Ranges. The South Australian Government has committed $50 million and the Australian Government has committed $63.2 million to assist with the transformation.

Benefits: Create a globally competitive and sustainable industry.

PORT AUGUSTA TECHNICAL COLLEGE

The State Government is building a new training-focused college to ensure Upper Spencer Gulf students are job-ready to embark on careers in key local industries, including mining and mineral processing, renewable energy, manufacturing, construction, tourism and health. To be built on site at the Port Augusta Secondary College, the innovative new college will partner with resources giant BHP, who will co-design courses and buildings. The Port Augusta site – which is due to open in 2025 – is part of a $208m plan for five technical colleges across the state.

Benefits: Equipping local students with the skills for direct pathways to in-demand jobs in the region.

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