Photo courtesy of Sims Ltd.
Sydney-based Sims Ltd., a metals and electronics recycling company with global operations, says it has entered into a nonbinding memorandum of understanding (MOU) to establish a scrap supply and services agreement with the owners of the proposed Alter Steel mill in Australia.
Sims says it has signed the MOU with Equest Steel Pty. Ltd., which has branded its proposed recycled-content electric arc furnace (EAF) steel rebar mill Alter Steel. Plans call for the mill to be built in Pinkenba in the Australian state of Queensland.
Under the terms of the MOU, Sims says it would “exclusively supply up to 550,000 metric tons of ferrous scrap annually, manage Alter Steel’s scrap inventory on a just-in-time basis and provide access to port and rail infrastructure via the staged development of Sims’ Pinkenba site.”
The Sims Pinkenba site mentioned is less than 1 mile from the proposed location of the Alter mill.
“This collaboration with Sims completes the supply chain to deliver the cleanest steel in Australia, right here in Queensland,” says Grant Johnston, managing director of Alter Steel.
“Sims is a global leader in metal recycling, and we’re proud to have them alongside us on this project,” adds Johnston. “Together, we’ll transform local scrap into high-value steel, cut emissions and keep manufacturing onshore.”
Johnston says his firm plans to begin construction of the EAF mill next year, with operations starting in 2028.
Stephen Mikkelsen, CEO and managing director of Sims, adds, “This MOU represents a strategic milestone for Sims. It reinforces our position as a key partner to Australia and New Zealand’s growing domestic steel sector.”
He adds, “The MOU provides a potential pathway to long-term volume certainty for both parties, supported by efficient logistics through the Pinkenba hub. We are very excited to work with Alter, supporting their ambitions in manufacturing low-emission steel.”
Sims indicates both parties will use the MOU as the framework for negotiating a binding agreement.
The recycling company describes Alter Steel as planning to “turn local scrap into 500,000 metric tons of reinforcing steel each year, keeping manufacturing in Australia and supplying Queensland and national projects with lower carbon material.”
Sims says it has its own plans for its Pinkenba site, involving turning the facility “into a world-class strategic logistics and metal recycling hub” that will accept material by waterborne vessels and rail, “significantly transitioning from road-based transport.”