For GM Steel, the opportunity is as simple as it is significant: take scrap metal that is already being generated in South East Queensland, process it locally, and turn it into reinforcing steel for the construction and infrastructure sectors
It is both a circular economy and a supply chain story. At a time when Queensland continues to invest heavily in infrastructure ahead of the Brisbane 2032 Olympic and Paralympic Games, GM Steel is working to establish a local steelmaking solution built around recycled scrap, Electric Arc Furnace (EAF) technology and regional manufacturing capability.
GM Steel, an Associate Member of the Australian Steel Institute, is progressing plans for a $500 million greenfield EAF facility in South East Queensland. The proposed mill is designed to produce 350,000 tonnes per annum of rebar and spooled coil, using proven Danieli technology and locally sourced scrap metal.
According to Andrew Price, Business Development Manager at GM Steel, the concept was driven by a clear inefficiency in the local market.
“In 2024, South East Queensland generated close to one million tonnes of scrap metal, and around 750,000 tonnes was exported overseas,” Price said. “Much of that material then comes back into Australia as rebar. We saw a genuine opportunity to capture that value locally, reduce unnecessary transport, and support a more resilient steel supply chain.”
From scrap to rebar
At the heart of GM Steel’s proposal is EAF technology. Unlike traditional blast furnace steelmaking, which relies heavily on iron ore and metallurgical coal, the scrap-EAF method uses recycled steel as its principal feedstock.
GM Steel has secured Danieli, a renowned global provider of steel manufacturing technology, as its technology partner. There are currently 25 Danieli reference projects across the globe, showcasing the effectiveness of the technology at various scales.
“Our objective is to be the first company to bring this technology to Australia, in Queensland,” Price says. “You put scrap in one side, and around an hour later you have finished rebar, either in straight bars or coil. It is a relatively straightforward continuous process, but it is also a very efficient one.”
“The scrap-EAF process can deliver a substantial reduction in carbon emissions compared with traditional blast furnace production, along with lower energy consumption, high yield, production consistency and reduced handling requirements.”
For Price, the environmental case and the commercial case are closely linked.
“There is demand for lower-emissions steel, but there is also demand for reliable local supply,” he says. “After COVID, a lot of building contractors and rebar distributors were carrying much larger inventories because they were concerned about supply constraints. From a working capital perspective, being able to access locally made rebar can make a real difference.”
Why Toowoomba?
GM Steel has selected a site at Wellcamp Business Park, near Toowoomba, with access to a 110kV electricity transmission line, transport networks, water, land and proximity to scrap metal suppliers and steel distributors.
The location was not incidental. Price says the company assessed multiple sites before selecting Toowoomba.
“Toowoomba ticked a number of boxes for us,” he says. “The key considerations were reliable electricity, water, geotechnical stability, transport access and room to grow. The site is co-located near a quarry, so we know the underlying ground conditions are suitable for a heavy industrial process. It is also close to the Toowoomba Bypass, which gives us good logistics access.”
The project secured development approval from both the Queensland State Government and the Toowoomba Regional Council in March 2026. Subject to final investment decision, GM Steel’s current timeline anticipates front-end engineering and design through 2026, a final investment decision in 2027, a two-year construction period and first metal in 2029.
Experience behind the project
GM Steel’s founders, Alan Morgan and Luke Godden, bring deep experience in metal recycling, scrap supply and steel industry relationships. Morgan has more than four decades of experience in the metal recycling sector, while Godden has owned and operated a major metal recycling business in Victoria and worked closely with steel mills and foundries in Australia and overseas. That background has shaped the project from the beginning.
“Alan and Luke know the scrap metal industry extremely well,” Price says. “They understand the feedstock, the logistics, the pricing and the relationships required to make a project like this work. From the point of view of scrap metal supply and product offtake, GM Steel is very well placed and has support from suppliers and customers alike.”
The project is also expected to create significant regional employment. GM Steel anticipates up to 300 jobs at peak construction and around 200 direct full-time roles once operations commence. The company expects many of those roles to be filled from the Toowoomba region, including operators, boilermakers, drivers, electricians and specialist metallurgists.
A local supply chain opportunity
GM Steel’s plan is to add to local manufacturing capability, lower-emissions steel, sovereign supply chains, infrastructure demand and regional industrial development.
The proposed facility would give Queensland a new source of locally manufactured reinforcing steel, while providing a domestic market for scrap metal that is currently exported. It would also help position South East Queensland as a stronger circular economy hub for steel.
Price says GM Steel sees the project as part of a broader shift in the Australian steel industry.
“We think 350,000 tonnes is the right scale,” he says. “It is large enough to make a meaningful contribution to the local market, but still aligned with the available scrap supply, energy requirements and offtake opportunities.”
For more information, visit: https://www.gmsteel.com.au/
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