The proposal is to establish a Research and Development Facility at Kwinana to prove the feasibility of a direct iron ore smelting process capable of producing commercially saleable iron product. The iron would ultimately be used as feed material for the production of steel products.

Hlsmelt Corporation Pty Ltd is a joint venture between CRA Limited and the Midrex Corporation of USA, which has been formed to manage the project. The research facility will be constructed within the boundaries of the decommissioned Australian Iron and Steel plant under lease arrangements from BHP.

The proposed facility has an estimated capacity of 100,000 tonnes per annum and has been developed from the results of seven years of research at a small scale pilot plant (15,000 tonnes per annum) in West Germany.