Magnetite Mines Ltd (ASX:MGT) has taken a major step towards achieving its decarbonisation goals by becoming an affiliate partner of HILT CRC, a cooperative research centre co-funded by industry, research organisations and government, with a focus on de-risking the transition of carbon-intensive heavy industries towards a 'net-zero' future.
As an affiliate partner of the Heavy Industry Low-carbon Transition (HILT) cooperative research centre (CRC), the company will have access to leading research programs, including the development of process technologies associated with magnetite concentrate production, which is a key enabler for 'green steel'.
HILT CRC’s vision is to create a prosperous heavy industry sector at the forefront of the global low-carbon transition and to achieve this through collaborative efforts and innovation.
Decarbonise heavy industry
MGT CEO Tim Dobson said: “The imperative to ‘decarbonise’ heavy industry, including iron and steelmaking, is urgent and clearly needs collaboration across industry, government and academia.
“At MGT, we see our role is to help speed up the global transition to green steel by unlocking and developing our massive magnetite deposits in South Australia’s Braemar region and this is why we are partnering with the HILT CRC.
“Like Magnetite Mines, HILT CRC is based in South Australia, a leader in renewable energy generation, with a government committed to green hydrogen and the development of future green iron production.
“We are excited to be working alongside Tier 1 & 2 iron ore producers, Australia’s leading researchers and other partners aiming to accelerate our transition to a ‘net-zero’ future through cooperative and innovative research, at the same time realising further value for MGT’s shareholders and stakeholders.”
Period of significant transformation
MGT’s motivation to join HILT CRC is centred around the company’s view that collaboration and innovation are vital to ensuring Australia’s commanding position as an iron ore supplier to the world’s iron & steelmaking industry is maintained.
The industry has entered a period of significant transformation as it switches to low-carbon technologies that require high-grade, low-impurity iron ore as feedstock.
In Australian terms, it is foreseen that regional iron ore customers will shift away from low-grade direct shipping ores (DSO), currently produced in massive volumes from WA’s Pilbara region, and increasingly source high-grade iron ore such as magnetite concentrates.
This shift has already commenced and is reflected in increasing price premiums being applied to high-grade iron ore products and increasing discounts being applied to low-grade iron ores.