Sims to Supply Planned Australian EAF Mill

Sims and Alter Steel Join Forces for Sustainable Steelmaking in Queensland

Sydney-based Sims Ltd., a global leader in metals recycling, has signed a nonbinding memorandum of understanding (MOU) with Equest Steel Pty. Ltd. to support the development of a new electric arc furnace (EAF) mill in Pinkenba, Queensland. The project, branded Alter Steel, aims to produce 500,000 metric tons of low-emission reinforcing steel annually using recycled ferrous scrap. Under the MOU, Sims will exclusively supply up to 550,000 metric tons of scrap metal per year and manage inventory through just-in-time logistics.

Located less than one mile from the proposed mill site, Sims’ Pinkenba facility will play a critical role. The company plans to transform this site into a logistics hub, leveraging both port and rail access to reduce road transport. This strategic alignment aims to streamline supply chains and lower the carbon footprint of steel production in Australia. The MOU also outlines collaboration on infrastructure development, enhancing the site’s capacity for sustainable operations.

According to Alter Steel Managing Director Grant Johnston, “This collaboration with Sims completes the supply chain to deliver the cleanest steel in Australia.” By sourcing local scrap and keeping manufacturing onshore, the partnership supports both environmental goals and domestic industry growth. Construction of the EAF facility is scheduled to begin in 2026, with full operations expected in 2028.

Strategic Impact of Sims’ Supply Agreement on Australia’s Green Steel Goals

This MOU not only solidifies Sims’ role in Australia’s decarbonization push but also signals confidence in domestic steel production. Sims CEO Stephen Mikkelsen emphasized the strategic importance of the deal, noting that it offers long-term volume certainty and operational efficiencies via the Pinkenba logistics hub. This agreement supports broader efforts to build a circular economy by reusing metal scrap domestically instead of exporting it.

By transitioning to low-emission EAF steelmaking, Alter Steel is poised to meet increasing demand for sustainable construction materials across Queensland and Australia. Rebar produced from recycled content will supply infrastructure and commercial projects, aligning with national emissions reduction targets. Furthermore, the shift from road to water and rail transport enhances supply chain resilience and environmental performance.

The partnership illustrates a shift in the Australian metals sector: toward high-value, green steel manufacturing and away from traditional, carbon-intensive production methods. This forward-looking model reinforces the importance of recycling infrastructure as a cornerstone of next-generation industrial strategy.

SuperMetalPrice Commentary:

This Sims–Alter Steel agreement marks a key inflection point for Australia’s emerging green steel sector. With infrastructure funding and ESG expectations rising, the ability to produce low-emission steel domestically offers a competitive edge. Sims’ move to expand its Pinkenba facility into a logistics hub demonstrates strategic foresight. It not only secures raw material supply for Alter but also positions Sims as a critical enabler of Australia’s decarbonized manufacturing future. The success of this partnership could accelerate similar EAF developments across the Asia-Pacific region.