Magnetite Mines Ltd (ASX:MGT) is aligned with the South Australian Government's initiative to pioneer a local green iron and steel industry.
The company plans to register an Expression of Interest with the Malinauskas Government as a key supply chain partner.
South Australian Premier Peter Malinauskas has highlighted the government's commitment to establishing a Direct Reduction Iron (DRI) plant by the end of the decade, with the aim of positioning the state at the forefront of low-carbon emission iron production.
Leveraging local resources
The collaboration would kickstart the development of a hydrogen-based DRI plant in South Australia, leveraging the state's abundant magnetite iron ore and renewable energy resources and catering to the increasing global demand for environmentally sustainable steel.
To this end, Magnetite Mines plans to emerge as a key supply chain partner for the government.
The company's flagship Razorback Iron Ore Project, in South Australia's Braemar Iron Province, is set to produce premium-grade, 'DR-grade' iron ore concentrates.
These high-quality, low-impurity concentrates are critical for the proposed hydrogen-based DRI plant's success.
Magnetite Mines also hopes to establish a Green Iron Hub at Port Pirie. This hub, to be fuelled by magnetite concentrates from Razorback, will serve as a central point for the new industry, benefiting from Port Pirie's existing infrastructure, skilled workforce and supportive community.
A Memorandum of Understanding with the Port Pirie Regional Council has already been signed, cementing the collaboration.
The creation of green iron hubs, like the one proposed at Port Pirie, is a key step towards global steel industry decarbonisation.
These hubs, strategically located in regions rich in renewable energy and DR-grade iron ore, aim to produce DRI as a low-carbon feedstock for steelmaking.
Integral to green iron future
Magnetite Mines' CEO Tim Dobson said: “Magnetite Mines is establishing itself to become an integral part of South Australia’s green iron future.
"We have written to Premier Malinauskas and Minister Koutsantonis congratulating them on their vision, reinforcing our support for the production of green iron in the state, and confirming our alignment with the Government’s approach to take a leading role in decarbonising global iron production.
“There is today a unique opportunity for the state of South Australia to take advantage of its world-leading renewable energy credentials, its considerable magnetite resource endowment and its plans to produce green hydrogen at scale, creating a new green iron and steel industry that will secure the state’s economic future.
“However, without magnetite concentrate production, there can be no green iron and steel production, hence the development of a reliable supply of premium-grade magnetite concentrates is the essential first step to creating a green iron and steelmaking industry in South Australia.
Rapid transition
“It is this opportunity that is driving Magnetite Mines’ plans to produce DR-grade iron ore concentrates just 240 kilometres from Adelaide, with the potential to export from the Upper Spencer Gulf both domestically and internationally and in doing so support the rapid transition to green iron and steel production.
“Today the steel industry produces 8% of the world’s carbon emissions, with commensurate negative impacts on climate change. By positioning itself to export green iron to the world, South Australia will embody its renewable energy advantage into an increasingly valuable and desired low-carbon export product and in doing so, secure a major new economic opportunity for generations to come.”