Magnetite Mines Ltd (ASX:MGT) is a foundation member of Green Iron SA, alongside Aurizon Holdings, Flinders Port Holdings (FPH) and GHD, a new consortium focused on pioneering a green iron industry in South Australia.
The collaboration will focus on the Braemar Iron Region of South Australia with its rich magnetite reserves – the high quality of iron ore is a key input to creating direct reduction (DR) grade iron ore, a cleaner and more energy-efficient feedstock than blast furnace (BF) grade iron.
Green Iron SA will seek to develop Port Pirie into a green iron hub for pelletising work, downstream manufacturing and bulk export.
The consortium is seeking a partnership with the South Australian and Federal governments with the goal of fast-tracking the critical water, power and logistical infrastructure needed for the new green iron industry.
Advancing decarbonisation transformation
“The time has arrived for South Australia to take advantage of its massive magnetite endowment,” Magnetite Mines managing director Tim Dobson said.
“With six billion tonnes of magnetite resources ready to mine, Magnetite Mines is excited to take this important step toward building a world-class green iron industry in South Australia.
“The Razorback Iron Ore Project will play a pivotal role in supplying the high-grade feedstock necessary for green iron production, which is set to become a key export commodity, supporting our balance of trade as Australia transitions away from fossil fuel exports.
“This project not only aligns with global decarbonisation goals but also positions South Australia as a leader in sustainable mining and green iron production.”
Razorback on fast track
The consortium’s first move will be to fast-track the Razorback Project, thereby securing a source of high-purity magnetite feedstock for green iron production.
From there, the collaborating companies intend to build out direct reduction pellet production facilities before ultimately exporting green iron in the form of Hot Briquetted Iron (HBI).
“GHD is delighted to bring our engineering and sustainability expertise to the Green Iron SA consortium,” GHD Resources and Energy executive leader Mike Nolan said.
“The use of green hydrogen and renewable energy for steel production has enormous potential in terms of reducing carbon emissions, and we’re excited by the prospect of establishing new standards for the global iron and steel industry.”
Other founders
Aurizon Holdings head of Customers & Growth David Steele said: “Opening up the Braemar requires an integrated logistics solution that can move vast quantities of iron ore efficiently and sustainably.
"Aurizon is supporting the development of a project critical to addressing the challenge facing the steel sector’s carbon emissions by providing the rail and freight infrastructure that will make South Australia’s green iron industry globally competitive.”
Also commenting on the consortium was FPH CEO Stewart Lammin, who said: “The Port Pirie precinct offers a unique opportunity to develop a state-of-the-art export hub.
"By leveraging existing infrastructure, we can fast-track the transition to a green iron industry and contribute to the economic prosperity of the region.
"FPH is ready to facilitate the export of green iron products to global markets, showcasing South Australia’s leadership in sustainable development.”