Tempest Minerals Joins $3B Green Steel Push with WA Magnetite Deal

Strategic Partnership for Green Steel

Tempest Minerals Ltd (ASX: TEM) has taken a significant step towards embedding itself in the burgeoning green steel sector by signing a Memorandum of Understanding (MOU) with Western Australian developer Green Steel and Iron Pty Ltd. The agreement sets the stage for a collaborative effort to develop a $3 billion multi-user hot briquette iron processing hub adjacent to Tempest's Yalgoo Project, leveraging the high-grade magnetite from the Remorse deposit.

This partnership aligns with the global steel industry's shift towards decarbonisation, with both companies aiming to produce high-grade magnetite concentrate suitable for green steelmaking processes. Green Steel and Iron, established in 2024, is already advancing a Direct Reduced Iron (DRI) plant in Mullewa and an Electric Arc Furnace (EAF) steel mill in Collie, positioning itself as a key player in Western Australia's low-carbon steel ambitions.

Remorse Deposit: A High-Grade Asset

The Remorse deposit, located within Tempest's 100% owned Yalgoo Project, has shown promising exploration results with iron grades reaching up to 39%. These grades are competitive with existing magnetite mines in Western Australia, underscoring the deposit's potential as a future supplier of premium iron ore for green steel production. Tempest plans further drilling and metallurgical testing in early 2025 to validate and expand this resource.

By collaborating with Green Steel and Iron, Tempest aims to fast-track the development of processing infrastructure, including pelletising and direct reduction plants, to convert magnetite into hot briquetted iron (HBI). This product is critical for EAF steelmaking, which is more environmentally friendly compared to traditional blast furnace methods.

Synergies and Industry Implications

The MOU outlines a framework for joint engineering design, infrastructure planning, and financing strategies. Green Steel's partnership with Danieli, a global leader in steelmaking technology, further strengthens the technical foundation of this initiative. The collaboration also signals a broader industry trend towards integrating upstream iron ore production with downstream green steel manufacturing within Western Australia, leveraging abundant renewable energy resources.

Don Johnston, Managing Director of Green Steel and Iron, highlighted the strategic importance of the Remorse deposit in realising their vision of a sustainable steel industry in WA. Tempest's Managing Director, Don Smith, echoed this sentiment, emphasising the partnership's role in positioning Remorse as a near-term supplier for the evolving low-carbon steel market.

Looking Ahead

As the green steel sector gains momentum, this MOU could serve as a catalyst for unlocking value in Tempest's iron ore assets while supporting Western Australia's transition to a low-carbon economy. The next phases will focus on detailed project optimisation, infrastructure collaboration, and advancing metallurgical studies to underpin commercial viability.