Rio Tinto and its partners developed the direct smelting technology over 25 years at a cost of more than $1 billion.
The process smelts iron ore fines from Rio Tinto Iron Ore’s mines in the Pilbara, and non-coking coal, to produce a premium grade iron product and a new source of low cost iron feed stock for electric arc furnaces.
The process delivers a low-cost, more environmentally friendly, high quality pig iron.
Construction of the HIsmelt plant at Kwinana was completed in April 2005 and will reach full production by 2008.
The plant will produce 800,000 tpa of pig iron for shipment world-wide, with an annual value of $250 million. Upgrade of the Kwinana plant led to over 900 people being employed during the refinery’s construction.
Another 130 have been employed in ongoing jobs at the plant.
The Kwinana Industrial Area, which already enjoys direct sales of some $4.3 billion each year, and employs 3,636 people, will also see flow-on benefits to the region’s economy.
HIsmelt has the potential to provide considerable benefits to all players in Australia’s iron ore industry. It presents a unique opportunity for Australian suppliers as other plants are built around the world.
HIsmelt celebrated its first year of operations in November 2006.