Alter Steel, Sims sign MoU covering 550,000 tpa of scrap for planned Pinkenba steel factory

ASX-listed metals recycler Sims Metal and Alter Steel, which intends to build a $750 million steel mill in Pinkenba, Queensland, have announced a supply and services agreement for the upcoming site.

According to a statement from Sims on Thursday, the pair have entered into a non-binding Memorandum of Understanding regarding the proposed electric arc furnace plant, scheduled to begin operating in 2028.

Sims said that the MoU covered exclusive supply of “up to 550,000 tonnes of ferrous scrap annually” to the reinforcing steel factory. The covers “manag[ing] Alter Steel’s scrap inventory on a just-in-time basis, and provid[ing] access to port and rail infrastructure via the staged development of Sims’ Pinkenba site.”

The latter is approximately one kilometre from the proposed EAF.

Alter Steel (the trading name of Equest Steel Pty Ltd) plans to produce as much as 500,000 tonnes of reinforcing steel annually at Pinkenba, made purely from scrap.

“Sims is a global leader in metal recycling, and we’re proud to have them alongside us on this project. Together, we’ll transform local scrap into high value steel, cut emissions, and keep manufacturing onshore,” said Alter Steel’s Managing Director, Grant Johnston. 

“Construction is planned to commence in 2026, with operations beginning in 2028. This project positions Queensland at the forefront of Australia’s low carbon steel industry.”

The news follows Alter’s announcement that it has finalised a contract with Italian engineering firm Danieli, selecting the company’s MIDA QLP minimill with Digimelter, citing a compact layout, energy efficiency and global track record.  

Alter plans to be the first Australian company to deliver wire rod, hot-rolled mesh, spooled coil and bar from a single site.

Picture: credit Alter Steel

Further reading

Alter Steel signs technology and equipment agreement with Danieli for $750 million Queensland steel mill project

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