The Premier outlines the government's strategy to diversify the WA economy by investing in low-emission iron projects, aiming to increase the value of iron ore exports, create jobs, and reduce emissions through partnerships and pilot projects.

AnsweredQoN 651Legislative Assembly
Asked
19 November 2025
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QuestionView source ↗

State economy—Diversification
651. Mr David Scaife to
the Premier:
I refer to the Cook
Labor government's commitment to diversifying the economy so that Western
Australia remains the strongest economy in the nation. Can the Premier update
the house on how recent developments in world-leading technologies will see
more things made in WA?

AnswerView source ↗

We often hear about
China being the world's factory, and that is because it accounts for around 30%
of global manufacturing, but compare that with Western Australia's dominance in
iron ore. The Pilbara accounts for around 40% of global supply, and last year
the value of these iron ore exports was around $115 billion. But we can do
better than this. Consider the value of selling these exports as a refined
product rather than simply an unprocessed ore product. It is more than triple
the current value, or around $30 billion a year, not to mention the thousands
of jobs that it would create. But we need to act now if we are going to take
the opportunities of creating these jobs before other countries have the chance
to get the jump on us. That is why the WA Government is getting behind low-emission
iron projects in WA.
Yesterday, we
welcomed another pilot project to Kwinana. This one, a partnership between Rio
Tinto and Calix, will trial a zero emissions steel technology named ZESTY. It
will use hydrogen to reduce iron ore to a product called direct-reduced iron.
Just down the road, NeoSmelt will pilot the use of an electric smelting furnace
to turn direct-reduced iron into molten iron. This pilot involves a consortium
of leading resources, energy and manufacturing companies, including BlueScope, BHP,
Rio Tinto, Woodside Energy and Mitsui. All of them are working together in WA
on ways to produce low-emission iron. These Kwinana low-emission iron projects
will join others under development across WA, including in the Mid West and the
Pilbara. If successful, these technologies offer a pathway for WA to add more
value here while reducing our own emissions and playing a key role in
decarbonising the global value steel supply chain. It is not just a question of
reaching net zero. Yes, this makes sense from an environmental point of view,
but it makes sense from an economic point of view as well. It is another way
that we can diversify WA's economy so that it can remain the strongest in the
nation.
We have to work for
the future. Those kids sitting in the Speaker's gallery today need to have the
opportunities that our generation have enjoyed. If we can continue to refine
iron ore to produce green steel precursor products, called green iron, we will
have an opportunity to create the jobs of the future; work our way up the value
chain, adding value to our most valuable export; create more jobs locally; and,
importantly, produce a cleaner iron product that is proudly made in WA.

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