Who we are
Magnetite Mines (ASX:MGT) is an ASX-listed iron ore company focused on the development of magnetite iron ore resources in the highly-prospective Braemar iron region of South Australia. The Company has a total mineral resource of 5.7 billion tonnes of iron ore123 located 240km from Adelaide – 100% owned by Magnetite Mines.
Within these tenements, our flagship Razorback Iron Ore Project is the current focus. To give you a sense of perspective, our stage 1 development plans for Razorback focus on just 8% of that resource, which is based entirely off our declared maiden Probable Ore Reserve of some 473 million tonnes.
In July 2021, we completed our Pre-Feasibility Study (PFS) which optimised the project configuration around comparatively low and competitive capital cost. Our Stage 1 development is a plant capacity of around 3Mtpa high-grade concentrate at a capital cost of around US$500M. We believe our top-down, capitally-driven, carefully-managed approach gives us the greatest chance of development success.
The Project will produce a premium high-grade iron ore concentrate at about 68% iron. We believe as general iron ore grades decline and steel mills face increasing pressure to decarbonise, the premium Razorback product will be in high demand.
Razorback has many unique geographical advantages which allow for, importantly, a low-capital, staged development.
The resource outcrops, allowing minimal stripping, and the Project is located close to heavy rail and existing iron ore ports.
High-voltage grid power is available, connecting to the main Southeast Australian grid, with a significant renewable energy component. While it would provide the Company with an estimated 70% renewable power supply today, the renewables intensity is forecast to increase significantly when the mine commences production. The latest projections for the South Australia grid from the Australian Government Department of Industry, Science, Energy and Resources forecast 97% renewables by 2025.
ESG credentials are very important for resource projects, and we are well positioned to target a low-emissions footprint for our operations and products, with a higher-grade product helping steel mill customers in reducing emissions.
Following the positive results of the PFS, we have moved directly to the Definitive Feasibility Study (DFS) for the Project which will take us to decision to mine, with plans for first ore on ship in late 2024/early 2025.
We have a very long-life iron ore project with expansion optionality in a tier 1 mining jurisdiction that will produce a superior iron ore product sought by steelmakers globally. Our key priority at this stage is low initial project capital that is realistically fundable as we move closer towards a decision to mine.
Premium Grade is a Major Advantage
PETER HANNAH FASTMARKETS/METAL BULLETIN
“To succeed in decarbonizing the global steelmaking industry there needs to be a greater recognition of how much the iron ore supply base needs to change. Vast volumes of existing production will need to be replaced by higher-grade supply, first to meaningfully reduce CO2 emissions from the prevailing BF/BOF technology, and later to meet the demands of a DRI sector at least an order of magnitude larger than it is today”
“Steelmakers need to adopt best practices that prioritise decarbonisation with existing assets. Some of these best practices include installation of energy efficient technology, optimisation of the blast furnace (BF) burden (e.g. with high-grade ore)”
Delivering Premium Iron Ore to high demand markets
Long Life with Optionality
Large resource with expansion potential.
Low Initial Project Capital
Staged development with ESG advantages
High Grade Product
68% Fe product
First ore on ship planned for late 2024