Western Australia's Environmental Protection Authority (EPA) has approved a $4 billion hot briquetted iron (HBI) plant near Port Hedland. Backed by South Korean steel company POSCO, the Port Hedland Iron (PHI) project will convert Pilbara iron ore into HBI and iron ore pellets.

The facility will produce about 2 million tons of HBI annually, which is a higher-value product. According to the Superpower Institute, this could significantly increase Australia's iron ore export revenue. The PHI project aims to be powered by renewable energy by 2050.

Port Hedland Mayor Peter Carter said the project would diversify the local economy and attract other industries.

The project now needs approval from the area's native title holders before moving forward.