Generation Steel plans to invest A$850 million (about US$560 million) in a new electric‑arc furnace facility near Collie, Western Australia, to recycle scrap steel into reinforcing bar, wire rod and merchant bar.

The mill is designed to output roughly 450,000 tonnes of reinforcing steel each year, supporting residential, commercial and infrastructure construction.

Annual electricity demand is estimated at about 250,000 MWh, which will be supplied entirely from renewable sources under a power purchase agreement with BHP.

Renewable power will be drawn from the Flat Rocks wind farm and the Merredin solar farm, with supply expected to begin in 2029, coinciding with the planned closure of most state‑owned coal generators in Collie.

The project has secured state works approval (August 2024) and Commonwealth environmental approval (April 2025), though a final investment decision and construction start have not yet been confirmed.

Generation Steel targets an emissions intensity of about 272 kg CO₂e per tonne of steel, positioning the mill among the lower‑emission reinforcing‑steel producers globally, though this remains a project goal rather than a verified performance metric.

The development is expected to process significant volumes of scrap metal currently exported from Western Australia, creating a domestic recycling loop and new industrial activity as the region shifts away from coal.