Magnetite Mines on track with iron ore mine designed to thrive in a greener world
Iron ore developer Magnetite Mines is well-placed to progress a DFS on its high-grade Razorback project as the pendulum swings towards higher-grade mines.
As Australia embraces net zero and global moves to green up the steel industry increase, Magnetite Mines (ASX:MGT) believes that the Razorback high-grade product will be embraced.
“We have observed a heightened focus and interest in pathways to low-emissions steel this year and as a high-grade project, we believe that the Razorback product will be well suited to lower-emissions steelmaking,” Magnetite Mines executive chairman and CEO Peter Schubert said.
“During the (September) quarter, we have further advanced discussions with potential partners and financiers and ESG attributes are a critical factor for many industry participants.”
Steelmaking is responsible for 8% of all CO2 emissions, largely generated through the carbon intensive blast furnace process and ‘green steel’ is increasingly being talked about.
Premiums for high-grade iron ore are increasing partly because they generate steel with more efficiency. That will only increase in the future with new technologies like green steel and hydrogen based direct reduced iron expected to be reliant on higher-grade ores.
According to a PFS released by Magnetite in July, Razorback will be among the world’s highest-grade producers, producing around 3Mtpa of a 68% concentrate grade expected to garner a substantial premium over the benchmark 62% fines price.
“The PFS was a significant milestone for the company which demonstrated the robustness of our high-grade iron ore project across a range of iron ore pricing scenarios and validated our staged, low-capital development pathway,” Schubert said.
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