Magnetite Mines Reports 6.6Bt Resource and Advances Strategic Deals for Razorback
Magnetite Mines Limited has updated its Razorback Iron Ore Project, revealing a 6.6 billion tonne mineral resource and progressing key strategic partnerships and approvals to support green steelmaking ambitions.
- 6.6 billion tonnes mineral resource and 2 billion tonnes ore reserve
- Strategic partnership negotiations with JFE Shoji Australia extended to end 2025
- Mining Lease Proposal submitted and government assessment underway
- Provisional patent filed for saline water flotation process to reduce water supply risks
- Green Iron SA consortium formed to develop green iron hubs in South Australia
A Major Step Forward for Razorback
Magnetite Mines Limited (ASX, MGT) has delivered a comprehensive update on its flagship Razorback Iron Ore Project, underscoring its position as a future cornerstone in the green steelmaking supply chain. The company now reports a substantial 6.6 billion tonne mineral resource across its South Australian tenements, including a 2 billion tonne ore reserve of premium-grade magnetite iron ore. This scale and quality position Razorback as a rare and critical asset amid growing global demand for green iron.
Strategic Partnerships and Project Progress
Meanwhile, the Mining Lease Proposal submitted to the South Australian Government marks a critical regulatory milestone. The government’s assessment is progressing without identified issues, paving the way for advancing approvals essential to project construction and operation.
Innovations in Water Supply and Sustainability
Water supply, a key technical risk for mining projects, is being actively de-risked. The base case involves a coastal desalination plant with a buried pipeline to the site, already factored into the project’s economics. However, Magnetite Mines has filed a provisional patent for a proprietary flotation process using saline water, which could eliminate the need for costly desalination infrastructure. This innovation aligns with the company’s broader sustainability commitments, including partnerships with the Ngadjuri Nation and leveraging South Australia’s 100% renewable electricity grid target by 2027.
Expanding the Green Iron Economy
The formation of the Green Iron SA consortium, comprising Magnetite Mines and key logistics and engineering firms such as Aurizon Holdings, Flinders Port Holdings, and GHD, signals a collaborative approach to developing green iron hubs at strategic locations like Port Pirie and Whyalla. This initiative is supported by both state and federal government policies aimed at decarbonising steel production and fostering a sustainable mining sector.
Beyond iron ore, Magnetite Mines is exploring its extensive 2,500km South Australian tenement portfolio for gold, copper, and critical minerals, capitalising on favourable market conditions and rising commodity prices. This diversification could enhance shareholder value and complement the company’s core iron ore ambitions.
Outlook and Market Position
With a low market capitalisation relative to its project value, Magnetite Mines stands at an inflection point. The company’s staged development pathway, targeting an initial 5 million tonnes per annum production facility with potential expansion to 10Mtpa, is underpinned by robust project economics and a long mine life. The Razorback Project’s premium-grade concentrate meets stringent specifications for direct reduced iron (DRI) production, critical for green steelmaking technologies.
As global steelmakers accelerate decarbonisation efforts, the demand-supply gap for high-quality iron ore is expected to widen, positioning Razorback as a strategically important source. Magnetite Mines’ progress in securing partnerships, advancing approvals, and innovating in water management will be key to unlocking this potential.
Bottom Line?
Magnetite Mines is poised to become a pivotal supplier in the green steel revolution, but finalising partnerships and approvals remains critical.
Questions in the middle?
- Will Magnetite Mines secure binding agreements with JFE Shoji Australia or other strategic partners by year-end?
- How will the provisional patent for saline water flotation impact project costs and timelines if fully developed?
- What are the prospects and timelines for exploration success in gold and critical minerals within MGT’s tenements?
