Private equity group eyes ‘green iron’ project in Queensland

Private equity group Quinbrook Infrastructure Partners announced on Monday the commencement of work on a new iron ore mine and “green iron” processing facility in Queensland, with an estimated cost of A$3.5 billion ($2.4 billion), Reuters reported on Monday.

The project, unveiled at a ceremony attended by Treasurer Jim Chalmers, will mine magnetite iron and refine it into green iron using hydrogen from clean energy sources instead of coal.

Quinbrook is in talks with Stanwell Corporation, a Queensland state-owned utility, to source green hydrogen from a proposed nearby facility. Planning approvals are underway, but development will take several years, with Australian mines typically taking 12 years to develop.

The Eulogie deposit, located 70 km west of Gladstone, still needs quality and scale testing. This project aligns with the government’s A$22.7 billion Future Made in Australia programme, aimed at boosting manufacturing and mineral processing.

Quinbrook’s statement did not specify the expected tax credits or support but highlighted confidence from recent federal budget announcements. The Stanwell project has also been shortlisted for government funding.