Australia has long discussed developing a green iron industry. While this appears to be a promising opportunity for Australian iron ore miners, companies such as BHP have made it clear they will not pursue this path, saying the production of green iron in Australia is commercially unfeasible. 

If Australia aims to position itself as a global leader in the emerging green iron market, it must first assess whether it has the essential ingredients and whether it is on track to leverage its resources to meet long-term targets. There are several pathways to producing low-emissions iron. 

Key findings

• Australia is expected to play roles both as a supplier of suitable feedstock and as a green iron producer. Yet Australian miners are missing the first wave of low-emissions iron production.
• Australia must pursue two parallel options: leverage its vast magnetite deposits to join existing suppliers of higher-grade iron ore, and develop new pathways and technologies to upgrade Pilbara’s low-grade iron ore for use in low-emissions ironmaking.
• New technologies that make Pilbara iron ore suitable for low-emissions ironmaking are essential for the wider decarbonisation of the global steel industry. But Australia can begin with existing technology if it aspires to become a green iron superpower.