Magnetite Mines has increased its Razorback Iron Ore Project resource estimate and is advancing strategic partnerships, while early saline water testwork shows promise for green iron production.
- Razorback Mineral Resource Estimate rises from 3.2 to 3.8 billion tonnes
- Ongoing negotiations with JFE Shoji Australia and a second strategic partner
- Positive initial saline water flotation testwork for Direct Reduction-grade concentrates
- Mining Lease Proposal assessment nearing completion with no material issues
- Active participation in South Australia’s Green Iron SA consortium
Strategic Partnering Progress
Magnetite Mines is making steady headway in securing funding for the Razorback Iron Ore Project’s Definitive Feasibility Study (DFS). The company is in active negotiations with JFE Shoji Australia, part of Japan’s JFE Holdings steel group, alongside a second potential strategic partner. These discussions aim to co-invest in the project’s development, with a non-binding Heads of Agreement extended to the end of 2025 to allow more time for finalising terms. This joint venture approach is designed to share capital and risk while aligning offtake interests with project ownership.
Resource Estimate Upgrade
In a significant technical update, Magnetite Mines has aligned the cut-off grade for its Mineral Resource Estimate (MRE) with that used for Ore Reserves at 8% estimated Davis Tube Recovery (eDTR). This adjustment has lifted the Razorback Project’s MRE from approximately 3.2 billion tonnes to 3.8 billion tonnes, boosting the company’s total global resource base in the Braemar region to around 6.6 billion tonnes. The Ore Reserve remains steady at about 2 billion tonnes, underscoring the project’s substantial scale and long-life potential.
Innovative Saline Water Testwork
Magnetite Mines is exploring environmentally progressive processing techniques, notably the use of saline (seawater) in ore flotation. Initial bench-scale testwork on Razorback samples has produced Direct Reduction (DR) grade iron concentrates suitable for green steel production using fresh water. While saline water test results are promising, they indicate further optimisation is needed to consistently meet concentrate quality thresholds across all ore types. The company has extended its testwork program in collaboration with equipment supplier Metso to refine filtration and washing processes, aiming to reduce freshwater dependency and enhance sustainability credentials.
Regulatory and Government Engagement
The Razorback Mining Lease Proposal submitted to the South Australian Department for Energy and Mining is nearing the end of its validity assessment, with no material issues reported. Magnetite Mines is addressing minor administrative matters and negotiating final agreements with overlapping tenement holders ahead of the public consultation phase. Concurrently, the company is actively involved in the South Australian government’s Green Iron Opportunity initiative through the Green Iron SA consortium, advocating for a green iron hub at Port Pirie. This aligns with broader decarbonisation trends in the steel industry and government funding programs targeting low-emission steelmaking projects.
Outlook
Magnetite Mines is positioning Razorback as a cornerstone project in the transition to green steel, leveraging its vast resource, strategic partnerships, and innovative processing approaches. The ongoing negotiations with JFE Shoji and a second partner, combined with positive metallurgical developments and regulatory progress, set the stage for a potential Final Investment Decision. However, the company acknowledges that further testwork and definitive agreements are required to fully realise the project’s potential.
Bottom Line?
Magnetite Mines’ Razorback project is gaining momentum, but key funding and processing milestones remain ahead.
Questions in the middle?
- Will the second strategic partner finalize terms alongside JFE Shoji to fully fund the DFS?
- Can saline water processing be optimised to consistently produce DR-grade concentrates across all ore types?
- How will South Australia’s green iron initiatives influence Razorback’s development timeline and financing?