Newcastle workers left behind by industrial closures will be first in line for jobs at Greensteel Australia's proposed $500 million electric steel mill on the old BHP site.
The privately-owned company, led by brothers chief executive Romany Ibrahim and president Mena Ibrahim, has unveiled plans to retrain and upskill local workers as it looks to revive steelmaking in the Hunter.
The pair, who also own steel company Reosteel, visited the site on Tuesday after the Newcastle Herald revealed their plans to build Australia's first new steel mill in more than 30 years.
Greensteel chief executive Romany Ibrahim said Newcastle had the heart, the people and the facilities to accommodate the steel mill.
"We'll be setting up an office here in Newcastle, and what we'll be doing is, those people who have lost jobs here will be first preference here," Mr Ibrahim said.
"It's the Newcastle people who will be employed first, and we will be upskilling them."
Greensteel has partnered with Danieli Group, an Italian manufacturer of plants and machines for the metals industry, which has a training academy to equip workers with the skills needed for the new technology.
Stage one of the proposal is a 600,000-tonne rebar facility employing more than 200 people.
Those employees would include fitters, electricians, crane drivers, metallurgists and engineers, with more jobs expected to be created during construction and through Hunter supply chains.
Mr Ibrahim remained tight-lipped on stage two, but said it would bring more than 500 and up to 1000 jobs.
Mr Ibrahim would not be drawn on whether Greensteel's products could be used to supply the state's plans to establish a $12 billion passenger train building pipeline in the Hunter.
Greensteel originally proposed a multibillion-dollar transition of South Australia's Whyalla Steelworks focused on zero-emissions technology, though the final sales shortlist announced in May advanced M Resources and Jindal Steel.
A 2025 announcement on Greensteel's website said it was reconsidering previously-announced plans to locate its hydrogen-fuelled plant in Newcastle after it was advised by the state government that it could not guarantee sufficient renewable energy supply.
Asked whether he was concerned about electricity costs and supply, given the issues facing Tomago Aluminium's energy-intensive plant, Mr Ibrahim said he had done his "homework".
"We obviously know what's available on site, hence the reason why this old BHP site is very suitable," Mr Ibrahim said.
Australian Manufacturing Workers' Union state secretary Brad Pidgeon welcomed the announcement with "open arms" and said the project could provide new opportunities for workers as the Hunter's economy transitioned.
"It is announcements like this today that are going to help shape our future in terms of developing our infrastructure, our skills, help transition workers away from the coal industry, but more importantly, create economic growth as well," Mr Pidgeon said.
As well as building the mill, Mr Pidgeon said Greensteel needed to build the demand.
He wanted steel made in the Hunter mandated for projects such as the Sydney Metro and tunnels.
"We actually want to make sure that the Hunter benefits from this," Mr Pidgeon said.
"We are pretty tired of imported steel from overseas that is out of spec, that is not generating any money here in the Hunter, and for us, we want to see local steel mandates implemented as well.
"Sovereign capability is super important for our nation ... we've seen the geopolitical space around the world be quite hostile and somewhat fragmented, it's really important now that we actually look after ourselves moving forward."
Expected to be operational by January 2028, the mill will forge Newcastle's return to steel production for the first time since the 2024 closure of Molycop's Waratah site ended more than a century of local steelmaking.
Business Hunter chief executive Bob Hawes said the proposal could help retain skilled workers while breathing new life into an existing industrial site.
"It's going to be interesting to see how that all links together, and what the dynamics do to the existing industry, as well as new industry coming here, but the important thing is to stay competitive and stay contemporary," Mr Hawes said.
"Hopefully, this sort of project gives a lead to what others can do when we use innovation and use technology to be doing something that we've been doing, but in a different way."
By using the BHP site, Greensteel should bypass "exhaustive planning processes" that could take years, Mr Hawes said.
The 70,000 square metre site on Industrial Drive, at Mayfield North, was home to the BHP steelworks for most of the 20th century before it closed in September 1999.
