Razorback to strengthen South Australian economy
BDO estimates $31 billion contribution to state economy over 30 years & extensive employment opportunities supporting regional development
- BDO EconSearch assesses economic benefits of 5Mtpa project over 30 years
- Over 400 new permanent jobs from MGT S.A. operations; over 2,400 flow-on roles
- $1B/year of direct and indirect economic benefit created for South Australia
- $5.4B contribution to Federal and State revenues over 30-year mine life
- Staged expansion to 10Mtpa will provide even greater economic benefits
Magnetite Mines CEO Tim Dobson commented:
“It is hard to overstate the impact that our Razorback Iron Ore Project will have on the economy of South Australia, and the prosperity it will bring for countless South Australians over decades to come. Razorback is a massive project, as quantified by this BDO economic assessment, and we see it as the door opener not only to further projects in the Braemar, but to an entire new Green Iron industry for the state.
“South Australia is leading the world in renewable energy and green hydrogen, establishing itself as the tier 1 location of choice for SE Asian steelmakers. The missing ingredient is premium DR-grade iron ore and that’s where Razorback comes in. BDO forecasts that the Project will generate over $1 billion a year in additional economic activity in South Australia and support the employment of almost 4,500 personnel during construction, and over 2,800 during operations.”
Magnetite Mines (ASX:MGT) is pleased to announce the results of an interim economic impact analysis that it commissioned from leading economic research consultant BDO EconSearch (BDO), confirming the potential significant benefits that will be contributed to the South Australian and Australian economies by the Razorback Iron Ore Project. These interim results provide essential support to MGT’s stakeholder engagement program as the Company seeks to build direct and in-kind support for the Project’s development.
BDO’s analysis has assessed the potential direct and indirect (or flow-on) benefits derived from both the construction and operations phases of the Project, as well as the financial contributions made to both the Australian and South Australian Governments under relevant taxation, royalty and other obligations.
This interim economic impact analysis was commissioned by MGT to provide the Company and project stakeholders clear demonstration of the economic and social value that the Project will potentially create, especially at regional levels where major economic activity and employment increases are likely to be experienced (refer Figure 1 for MGT’s economic impact snapshot)
The analysis of the Project’s economic impact is based on a production profile of 5Mtpa output over 30 years, which is aligned with MGT’s recently announced new configuration for Stage 1 of the Project. The Project’s economic impact can be expected to grow substantially for future staged expansion to 10 Mtpa.1