Rio Tinto, a major player in the mining industry, has expressed skepticism about Australia’s ability to become a leader in the "green iron" sector. This sentiment echoes a similar stance from peer BHP. According to Rio Tinto’s chief technical officer, Mark Davies, there is currently no economic incentive for companies to transition to hydrogen direct reduced iron (DRI), or "green iron." Davies stated that the technology remains unproven and the process of converting existing natural gas-based systems to hydrogen is complex and expensive.

Australia is the world's largest supplier of iron ore and has been actively seeking to establish itself as a reliable source of green metals. The government has even allocated A$1 billion ($652.4 million) to support the development of a green iron and steel industry. However, Australia's iron ore is generally low-grade, requiring an additional processing step. To produce green iron, this step must be undertaken with hydrogen from renewable energy instead of coal.

Both Rio Tinto and BHP contend that the high costs associated with building such infrastructure in Australia are a significant barrier. Davies suggested that a global carbon price of "a couple of hundred dollars" would be necessary to make the transition economically viable.