¶ GREEN Steel of WA has inked an agreement paving the way for partnership and investment in its Collie Steel Mill.
Green Steel and Vietnamese company Stavian Industrial Metal have entered into a memorandum of understanding (MoU), seeking to establish a strategic partnership for joint investment in development of the electric arc furnace plant.
Under the agreement, the two will work together during the development phase after which Stavian intends to acquire a “cornerstone stake” in the mill alongside other potential investors.
Green Steel is targeting a final investment decision in the coming months ahead of construction getting underway by the end of the year.
The MoU lays out the conditions for a binding joint development agreement prior to the final investment decision.
Green Steel managing director Azlan Ho told the Bulletin in June that the company looks forward to “finalising the investment in Collie” after council gave the go ahead for additional truck movements to and from the mill.
The decision came amid ongoing planning to extend the existing Griffin Coal Mine rail loop to service the mill.
Mr Ho said it would provide “confidence to investors that, while rail is the preferred long-term transport solution, the mill will be able to commence operations even if rail infrastructure is not fully completed by day one”.
The mill will produce 450,000 tonnes of steel each year, converting locally sourced scrap steel into low-carbon rebar.
It is expected to create 500 jobs during its construction phase and 200 long-term positions.