Magnetite’s Razorback to benefit from SA grid’s renewables

Magnetite Mines (ASX:MGT) is progressing development of its Razorback Iron Ore Project with a formal application submitted for a grid electricity link.

The company has submitted a formal application to ElectraNet for a proposed 132 kilovolt (kV) transmission line to be built from Robertstown to the project site in South Australia’s Braemar.

The line will carry a load of about 40 megawatts to support the proposed 2.5Mtpa to 3Mtpa Stage 1 plant and mining operation and allows the project to connect to the National Electricity Market.

Magnetite Mines is aiming to leverage the connection to the grid and benefit from competitively priced, reliable grid electricity with a high renewable content. The company added that while about 70% renewable power is available now, the renewables intensity of the South Australian grid is forecast to be close to 100% when the project starts production.

“We take our ESG credentials very seriously and this is another key example of the Razorback Iron Ore Project’s infrastructure and location attracting cost and emission savings” Magnetite Mines’ Executive Chairman Peter Schubert said.

Razorback remains on track for a decision to mine in late 2022 with first iron ore exports targeted for late 2024 or early 2025.

“This application represents achievement of a major milestone on Razorback’s development pathway” said Magnetite Mines’ Chief Development Officer Stephen Weir.

“The project is at a stage where it can formally apply to connect its planned load to the National Energy Market.  This confirms our intent to the market regulator and allows us to access very competitively priced power under long term contracts with renewable content of ~70% forecast to increase to ~95% around the time we are in production.”

 

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