Magnetite Mines broadens its strategic partnerships and progresses key approvals for the Razorback Iron Ore Project, while uncovering new rare earth mineralisation and expanding its green iron consortium.
- Non-binding agreement with JFE Shoji Australia lapses but future collaboration remains possible
- Renewed MoU with ZEN Energy targets green iron production in South Australia
- Mining Lease Proposal passes state government validity assessment, advancing approvals
- CSL Australia joins Green Iron SA consortium, enhancing logistics capabilities
- New rare earth element mineralisation confirmed at Ironback Hill with drilling planned
Strategic Partnerships Evolve Amid Global Decarbonisation
Magnetite Mines Limited (ASX – MGT) has taken a dynamic approach to its strategic partnerships in response to shifting global iron and steel decarbonisation trends. The company’s non-binding Heads of Agreement with JFE Shoji Australia expired at the end of 2025, yet JFE Shoji continues to acknowledge the Razorback project’s strategic value, leaving the door open for future collaboration. Meanwhile, Magnetite Mines renewed its Memorandum of Understanding with ZEN Energy, focusing on a green iron production opportunity in South Australia, positioning itself as a key supplier of raw materials for emerging low-emissions steelmaking.
Progress on Project Approvals and Infrastructure
The Razorback Iron Ore Project’s Mining Lease Proposal successfully passed the South Australian government’s validity assessment, a critical milestone that moves the project into cross-agency review and public consultation phases. This progress underscores the technical robustness of the proposal and aligns with the company’s vision to supply high-grade magnetite concentrates for direct reduction steelmaking.
Infrastructure development also gained momentum with CSL Australia joining the Green Iron SA consortium. CSL brings world-leading expertise in maritime logistics and bulk materials handling, complementing existing consortium members and strengthening the mine-to-market supply chain. Additionally, ElectraNet’s planning for a high-voltage transmission corridor near Razorback could significantly reduce power costs, while government-backed water supply feasibility studies advance, addressing critical infrastructure needs.
Rare Earth Elements and Multi-Commodity Exploration
Beyond iron ore, Magnetite Mines reported encouraging new results from its Ironback Hill project, confirming additional near-surface, clay-hosted rare earth element mineralisation. This discovery supports a planned low-cost air-core drilling program in early 2026 to delineate the extent of these critical minerals, which are vital for green technologies. The company also secured a new exploration licence adjacent to Ironback Hill, expanding its footprint in the Braemar iron region.
Exploration efforts continue across other commodities, with copper re-assays underway at the Mutooroo Ridge project and a new gold exploration licence application lodged near the Razorback project. These initiatives reflect a capital-light strategy to diversify resource potential while maintaining focus on the flagship Razorback development.
Financial Position and Corporate Developments
Magnetite Mines ended the quarter with $2.8 million in cash and successfully converted a portion of its convertible loan notes into shares, strengthening its balance sheet. The company’s Annual General Meeting saw all resolutions passed, reflecting shareholder support for its strategic direction. Related party payments were disclosed transparently, including directors opting to receive shares in lieu of fees, aligning management incentives with shareholder interests.
Investor engagement remained active, with participation in key industry conferences and business forums, positioning Magnetite Mines at the forefront of discussions on green iron and steel decarbonisation pathways.
Bottom Line?
As Magnetite Mines advances approvals and expands its green iron ecosystem, upcoming assay results and government consultations will be pivotal for its next growth phase.
Questions in the middle?
- Will Magnetite Mines secure new strategic partners to replace or complement JFE Shoji Australia?
- How will the public consultation outcomes impact the timeline for Razorback’s Mining Lease grant?
- What economic potential do the newly identified rare earth elements hold for the company’s diversification?