Division 20Integrated iron and steel manufacturing

### Division 20—Integrated iron and steel manufacturing > Note: Carbon steel, relevant product and saleable quality are explained in Part 2. 320 (1) Integrated iron and steel manufacturing is the chemical and physical transformation of iron ore into crude carbon steel products and hot‑rolled carbon steel products involving all of the following processes: (a) the chemical and physical transformation of iron ore into agglomerated iron ore, such as iron ore sinter or iron ore pellets; (b) the carbonisation of coal (principally coking coal) into coke oven coke; (c) the chemical and physical transformation of either or both of limestone and dolomite, into lime (including burnt lime and burnt dolomite); (d) the chemical and physical transformation of iron ore feed, including agglomerated iron ore, into molten iron which includes the reduction of oxides of iron using carbon as the predominant reducing agent; (e) subject to subclause (3), the chemical and physical transformation of molten iron and cold ferrous feed, such as pig iron, flat iron and ferrous scrap, into one or more of the following: (i) continuously cast carbon steel products; (ii) ingots of carbon steel; (iii) hot‑rolled carbon steel products, which commenced hot‑rolling at a temperature higher than 800 °C. (2) Integrated iron and steel manufacturing may also include the physical transformation of continuously cast carbon steel products into hot‑rolled carbon steel products which commence hot‑rolling at a temperature higher than 800 °C if the continuously cast carbon steel products are produced at any other facility that conducts: (a) the activity of integrated iron and steel manufacturing; or (b) the activity of manufacture of carbon steel from cold ferrous feed. (3) For paragraph (1)(e), the maximum percentage of cold ferrous feed transformed into one or more of the items in subparagraphs (1)(e)(i) to (iii) as a proportion of molten iron and cold ferrous feed, must not: (a) for a facility that does not meet the criteria in subclause 705(1) or (2)—be greater than 30% over the previous financial year for the facility; or (b) for a facility that does meet the criteria in subclause 705(1) or (2)—be likely to be greater than 30% over the financial year to which the application relates for the facility. (4) Integrated iron and steel manufacturing is specified as an emissions‑intensive trade‑exposed activity. (5) Integrated iron and steel manufacturing is a highly emissions‑intensive activity. > Note: See Part 4. (6) For the production of iron ore sinter, the basis for the issue of free carbon units is by a tonne of iron ore sinter on a dry weight basis that: (a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and (b) is produced as part of carrying on the emissions‑intensive trade‑exposed activity. (7) For the production of iron ore pellets, the basis for the issue of free carbon units is by a tonne of iron ore pellets on a dry weight basis that: (a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and (b) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (c) is not a relevant product for the emissions‑intensive trade‑exposed activity of production of iron ore pellets mentioned in Division 35. (8) For the production of coke oven coke, the basis for the issue of free carbon units is by a tonne of coke oven coke on a dry weight basis that: (a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and (b) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (c) is not a relevant product for the emissions‑intensive trade‑exposed activity of coke oven coke production mentioned in Division 45. (9) For the production of lime, the basis for the issue of free carbon units is by a tonne of lime on a dry weight basis that: (a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and (b) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (c) is not a relevant product for the emissions‑intensive trade‑exposed activity of production of lime mentioned in Division 28. (10) For the production of either or both of continuously cast carbon steel products and ingots of carbon steel, the basis for the issue of free carbon units is by a tonne of either or both of continuously cast carbon steel products and ingots of carbon steel that: (a) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (b) is not a relevant product for the emissions‑intensive trade‑exposed activity of the manufacture of carbon steel from cold ferrous feed; and (c) is of a saleable quality. (11) For the production of hot‑rolled carbon steel products that are long products, the basis for the issue of free carbon units is by a tonne of long products of hot‑rolled carbon steel that: (a) is in coils or straight lengths; and (b) is generally produced in rod, bar and structural (section) mills; and (c) generally has a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and (d) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (e) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (13); and (f) is counted as a relevant product only once in relation to the carrying on of the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (g) is not a relevant product for the emissions‑intensive trade‑exposed activity of the manufacture of carbon steel from cold ferrous feed; and (h) is of saleable quality. (12) For the production of hot‑rolled carbon steel products that are flat products, the basis for the issue of free carbon units is by a tonne of flat products of hot‑rolled carbon steel that: (a) is flat in profile, such as plate and hot rolled coil; and (b) is generally produced in hot strip mills and plate mills; and (c) is generally at least 600 mm wide; and (d) is generally no thicker than 150 mm; and (e) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (f) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (13); and (g) is counted as a relevant product only once in relation to the carrying on of the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (h) is not a relevant product for the emissions‑intensive trade‑exposed activity of the manufacture of carbon steel from cold ferrous feed; and (i) is of saleable quality. (13) For paragraphs (11)(e) and (12)(f), the continuously cast carbon steel products must be produced as part of carrying on: (a) the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; or (b) the emissions‑intensive trade‑exposed activity of manufacture of carbon steel from cold ferrous feed. (14) For this Division: > coke oven coke means the solid product obtained from the carbonisation of coal (principally coking coal) at a high temperature and includes coke breeze and foundry coke.