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Australia’s largest iron ore miners, BHP and Rio Tinto, alongside BlueScope, have chosen the Kwinana Industrial Area in Western Australia (WA) for a pilot plant study on ironmaking using an electric smelting furnace (ESF). 

The NeoSmelt collaboration, formed in February 2024, combines BHP and Rio Tinto’s expertise in Pilbara iron ore with BlueScope’s experience in ESF technology. Woodside Energy will join as an equal equity participant and energy supplier, pending commercial arrangements. 

The Kwinana Industrial Area was selected for its transport logistics, infrastructure and a A$75m ($47.6m) contribution from the WA Government. 

The pilot plant aims to test and optimise the ESF, which can produce iron suitable for basic oxygen steelmaking, offering a low CO₂-emission-intensity alternative to traditional blast furnaces. It will produce 30,000–40,000 tonnes of molten iron annually.

Initially, the plant will use natural gas to reduce iron ore to direct reduced iron, with plans to transition to hydrogen with lower carbon emissions. A feasibility study is planned, with a final investment decision targeted for 2026 and operations to begin in 2028.

Peabody Energy has announced the successful shipment of its first coal product from the Centurion mine in Queensland’s Bowen Basin.

The move marks a significant milestone in the redevelopment of the premium hard coking coal mine. The shipment was sent to the Dalrymple Bay Coal Terminal and exported to an Asian customer in the second week of December.

The Centurion mine is ramping up production, aiming for higher-volume longwall production by March 2026. Its annual production is set to average 4.7 million tonnes (mt), with approximately 140mt in reserves, ensuring a mine life of more than 25 years.

Peabody president and CEO Jim Grech said: “This is the first strategic step in transforming Peabody into a primarily metallurgical coal producer, and we are proud of the strong progress being made.”

The Australian Government has announced a $75m (A$117.28m) investment aimed at enhancing the supply of critical minerals necessary for the renewable energy transformation. This initiative is part of the broader Future Made in Australia strategy.

The Clean Energy Finance Corporation (CEFC), a specialist in Australia’s transition to net-zero emissions, will collaborate with Resource Capital Funds, a global alternative investment manager, to promote decarbonisation within the Australian critical minerals mining sector.

The focus will be on lithium and nickel, key components in battery technology, and copper, which is essential for electrification.

With more than $30bn available from the Australian Government, the CEFC is poised to work alongside co-investors, industry stakeholders and the government to stimulate economy-wide decarbonisation investments.

Mining giant Rio Tinto has partnered with Sumitomo Metal Mining (SMM) to advance the Winu copper-gold project in the Great Sandy Desert region in WA.

SMM will acquire a 30% equity share in the project for $399m (A$642m), which includes an upfront payment of $195m (A$314m) and deferred considerations.

The Winu project, discovered by Rio Tinto in 2017, is a low-risk, long-life copper-gold deposit with potential for expansion.

It is strategically located near Rio Tinto’s Pilbara iron ore assets and is currently under development. The rights to develop and operate the project will continue to be held by the managing partner Rio Tinto.

Rio Tinto and SMM aim to finalise the Winu project joint venture agreements and formalise their strategic partnership by mid-2025.

Mining services provider Perenti has secured A$185m ($115m) in new contracts and a contract extension at mines in Australia.

The company’s underground mining business, Barminco, has started mobilisation at Focus Minerals’ Bonnie Vale gold project in WA, where it will provide underground development, production and mining support services under an initial three-year contract. Perenti will use idle fleet for the project, which is included within its 2025 fiscal year capital expenditure plans.

Ranger Drilling, a part of Perenti’s Drilling Services division, has also been awarded a five-year contract with Roy Hill Iron Ore Pty Ltd.

Two other Perenti subsidiaries, DDH1 Drilling and Strike Drilling, have started diamond drilling and reverse circulation drilling programmes at Rox Resources’ Youanmi gold project in WA. First assays from the programmes are expected in February and are due to be completed by May.