Magnetite Mines Ltd (ASX:MGT) has signed a memorandum of understanding (MoU) with the District Council of Peterborough underpinning the collaborative development of the Razorback iron ore project.
Located 250 kilometres north of Adelaide in South Australia, the council consists of the Peterborough, Yongala and Oodla Wirra townships, and — according to a joint statement to the ASX this morning — is primed to become the Razorback project’s key service centre.
The MoU aims to bring the council, Magnetite Mines and other key stakeholders together on matters of shared local interest. That includes a commitment to maximise social, environmental and employment opportunities; supporting engagement with local residents and businesses; identifying opportunities to develop, fund or manage shared infrastructure; and exploring the potential for ancillary developments that may also benefit the Razorback project.
“Magnetite Mines is determined to role model sustainability leadership through all phases of the Razorback project and this unique MoU is an example of that commitment,” Magnetite Mines chief executive Tim Dobson said.
“Our actions today establish a foundation for positive community relationships ahead of decades of projected production from Razorback and the massive Braemar iron region, and we look forward to creating the opportunity for economic growth and jobs in the Peterborough and surrounding communities.”
The opportunity for Peterborough
Located 80 kilometres west of the Razorback project, the District Council of Peterborough is strategically important for its position at the western end of the mine access and transport corridor.
With Magnetite Mines’ iron ore inventory of roughly six billion tonnes, the production of magnetite iron ore concentrates from Razorback is seen as the potential dawn of a new “green iron” industry for the state.
“This is a momentous occasion for the council and the community that provides optimism for planning a sustainable future founded on employment prospects, business opportunities and potential population growth,” council mayor Ruth Whittle said.
“The council will be working closely with Magnetite Mines to understand the infrastructure upgrade needs, development requirements for businesses and residential growth opportunities to support the mine development during the initial construction phase and into full operations.”
According to an economic impact analysis by BDO EconSearch, Peterborough — “as the logical gateway to the Razorback project” — stands to benefit from more than $290 million in additional economic activity and almost 60 new jobs.
Written by Oliver Gray.