Australia launches new $636 million Green Iron investment fund

The fund was developed in consultation with industry

Australia is launching a new investment fund, Green Iron, worth A$1 billion ($636 million). This is stated on the website of the federal government.

As noted, this way the government is consolidating the country’s position as a powerful producer of green iron.

The fund will promote the development of clean iron production and supply chains by supporting such projects and stimulating large-scale private investment, and will create

Up to A$500 million from the fund will be allocated to support the energy transition of the Wyalla steel plant and strengthen local jobs. Another A$500 million will be available to applicants across Australia, both for existing facilities and new projects. This will help to increase the capacity of Australia’s iron ore industry, adding more value, and open up new opportunities for the country’s industry.

The fund was developed in close consultation with industry through a group of experts.

Australia is the world’s largest iron ore producer. In fiscal year 2023/2024, the country’s revenue from the export of this raw material amounted to more than A$100 billion. In general, the ferrous metals sector supports more than 100 thousand direct and indirect jobs.

As noted, this step complements the existing measures of the Australian Labor government to support the country’s energy and mining sectors.

“The Green Iron Investment Fund will allow Australia to take advantage of our existing iron ore supply chain, renewable energy potential, world-class research and highly skilled workforce,” said Ed Husick, Minister of Industry and Science.

As GMK Center reported earlier, Australia is providing a $1.5 billion aid package to Gupta’s Wyalla steel mill. The aid announcement was made after the plant went into temporary administration.