Australia Launches AU$500M Green Iron Fund to Support the Industry, Boost Jobs

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The Australian Government is supercharging the country’s green iron industry with the National Development Stream of the Green Iron Investment Fund.

In a September 13 statement, Minister for Industry and Innovation and Minister for Science Tim Ayres said that green iron “is a major opportunity to grow Australia’s iron ore industry and build a new industrial sector.”

AU$500 million in grant funding will be allotted to drive the industry, with private investments set to be incentivised. The government said that this amount “lays the foundation for a multibillion-dollar industry.”

The program is also expected to boost jobs and value to Australia’s investment future.

“Australia is in the pole position to lead the global shift to green iron and steel,” the statement read, adding that the Minerals Institute of Western Australia (MRIWA) has found a green iron plant that can potentially increase AU$85 billion to gross domestic product.

MRIWA said in a separate article that Western Australia accounts for 38 percent of iron ore supply globally, making it the state’s “largest and most important industry.”

On a national scale, the federal government believes that Australia has everything it needs to capitalise on the opportunity.

“As the world’s biggest exporter of iron ore, we have the potential to decarbonise one of the most carbon-intensive industries, steelmaking, which contributes around 8 percent of global emissions.”

The statement also cited a 2023 Accenture report, which stated that a green metals industry could deliver up to AU$122 billion a year in export revenue to Australia’s economy by 2040.

In October 2024, a new consortium made up of Magnetite Mines (ASX:MGT), freight rail transport company Aurizon Holdings (ASX:AZJ), South Australian port operator Flinders Port Holdings and global engineering company GHD was established to kickstart the green iron industry in Australia.

Both existing facilities and greenfield projects are open to submit to the grant, provided that they are early mover projects ready to commence commercial-scale production of green iron by 2031.

The grant is scheduled to be officially launched on October 28.