The proponent behind the Collie green steel mill has struck another supply deal while expanding the proposal’s scope with a $40 million cut-and-bend facility.
Generation Steel, formerly Green Steel of WA, has shaken hands with Victorian manufacturer Stride Reinforcement to supply ready reinforced steel from its proposed mill.
It's also revealed plans to add a $40 million cut-and-bend facility at the South West site to deliver 100,000 tonnes per annum of ready reinforced steel to construction customers.
The expansion brings the low-carbon steel making project’s total value to $850 million, with Generation Steel targeting taking a final investment decision in late 2026.
The mill, which is expected to come online in 2028, is forecast to produce 450,000 tonnes of steel annually, along with 100,000tpa of cut-and-bend capacity.
The "green steel" will be produced using recycled scrap steel and renewable-powered electric arc furnace technology, a more energy-efficient process that the proponent says produces significantly lower emissions than traditional blast furnace methods.
The Victorian supply arrangement adds to the MOUs Generation Steel has already signed with Lendlease and Laing O’Rourke for the construction material.
Last month, state government tipped in almost $10 million towards the completion of pre-development activities as the project, on top of $4.5 million already commited.
The funds were allocated from the $230 million Collie Industrial Transition Fund, established to attract large-scale industrial projects and create long-term jobs in Collie as the town prepares to transition away from its coal-fired power industry.
Generation Steel co-founder Don Johnston said the Stride Reinforcement partnership was the first of more east coast deals to come.
“Right now, the majority of reinforcing steel used in Australia is imported, and even Australian-made rebar is foreign owned and suffers from a lack of any competition,” he said.
“Cash and capital that could have been reinvested has instead drained away from Australian industry. This exposes Australia’s major construction projects to risk, price volatility, and sudden supply disruption.
“By partnering with strong, Australian-owned independents like Stride, we can reliably supply genuinely local, low-emission steel to construction projects right across the country.”
Generation Steel’s co-founder Raj Aggarwal added that the project came at a pivotal moment for Australian manufacturing.
“Reinforcing steel in Australia is at the centre of three macro forces: pressure on supply chains in the face of geopolitical shifts, a lack of investment in new mills, and the emergence of technology which reduces energy use and emissions while improving cost and capability,” he said.
“Meeting these pressures requires a profound change in how we think about manufacturing investment, and sovereign resilience.”
“Just as we need investment in Australian fuel making, we need locally owned and made steel, and this project will shore-up supply and local jobs for generations.”
The green steel mill is expected to create 500 jobs during the expected 24-month construction phase and support 250 ongoing local roles in Collie.
The proposal comes amid a transitional time for the regional town built on coal, as the state prepares to transition away from coal-fired power by 2030.
It would also mark Australia's first new steel mill in more than 30 years and a first in Western Australia, against the backdrop of the embattled Whyalla Steelworks operation in SA.
