Magnetite Mines Ltd (ASX:MGT) has taken an important step towards developing the Razorback Iron Ore Project by signing a Memorandum of Understanding (MoU) with Whyalla Ports Pty Ltd to investigate export services.
Whyalla Port is an integrated iron products export facility on the northwestern coast of Spencer Gulf, adjacent to the city of Whyalla, South Australia, currently exporting in excess of 9Mtpa of iron ore products.
Storage shed at Whyalla Port inner harbour.
The purpose of the MoU is to investigate the use of port handling and shipping facilities for the export of high-grade magnetite concentrates from MGT’s flagship Razorback Iron Ore Project.
Whyalla Ports is a company that is part of the GFG Alliance and managed by SIMEC Mining, a business unit within the GFG Alliance responsible for the iron ore business in the South Middleback Ranges.
The port is 200 linear kilometres from the Razorback site and has featured as the preferred port option for the project since the 2021 pre-feasibility study (PFS), offering a low capital option with established iron ore export facilities and connection to the project site by rail.
“Low-risk, simplified development pathway”
MGT CEO Tim Dobson said: “Our agreement to work with SIMEC Mining to investigate export services as part of an overall review of export options represents an important step in the development of the Razorback Iron Ore Project.
“A key feature of the project is its location in South Australia, with nearby rail infrastructure and the opportunity to access existing port capacity offering a low-risk, simplified development pathway.
“MGT and SIMEC Mining both share aspirations to contribute significantly to the urgent decarbonisation of the steel industry, taking advantage of South Australia’s unique attributes with respect to renewable energy, large-scale magnetite resources and supportive stakeholders.”
Whyalla Port
In operation since 1903, the Whyalla Port is a long-established and currently operating iron ore export port, shipping a combination of both magnetite and hematite ores, and pellets to Asian markets.
The port is connected to the open-access ARTC railway network, which in turn passes within 50 kilometres of the Razorback Project site.
The anticipated Project includes a rail spur, balloon loop and train loading facility at site that would allow a direct rail connection between the Razorback process plant and the Whyalla Port, as shown in Figure 1.
Figure 1. Whyalla Port location and indicative transport pathway.
Whyalla Port is currently the only port in South Australia with available capacity for material iron ore exports without the need for significant infrastructure development.
Since 2007, Whyalla Port has utilised transhipping to move iron ore from shore to ship.
Commonly used in shallow water ports globally, transhipping enables iron ores to be transported from port to large-scale bulk carriers anchored in deeper waters using transhipment barges.
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