Tempest Minerals (ASX:TEM) Partners with GreenSteel to Develop Remorse Magnetite Deposit

Highlights

• Tempest Minerals has entered into a Memorandum of Understanding (MOU) with GreenSteel, a major player in green iron steel technologies.
• The collaboration aims to explore development opportunities for the Remorse magnetite deposit in Western Australia and produce high-grade magnetite concentrate for use in eco-friendly steelmaking processes.
• Additional drilling and metallurgical test-work are planned at the Remorse Deposit in 1QFY25.

Tempest Minerals Limited (ASX:TEM) has signed a Memorandum of Understanding (MOU) with Green Steel and Iron Pty Ltd (GreenSteel) to explore development opportunities for its high-grade Remorse magnetite deposit in Western Australia. The collaboration will focus on producing high-grade magnetite concentrate for use in steelmaking processes.

The MOU outlines a framework for cooperation between Tempest and GreenSteel to establish a green steel business in Western Australia. This will leverage TEM’s iron ore deposit at the Yalgoo project and GreenSteel’s expertise in green steel production.

Key Objectives of the MOU

• Securing a local off-taker for Tempest’s iron ore
• Plan for the engineering design of a pelletising and direct reduction plant
• Develop an initial infrastructure plan
• Explore financial synergies and create long-term business strategies.

About Green Steel and Iron

Established in 2024, Green Steel and Iron is a Western Australia-based company focused on developing a sustainable iron reduction and steel manufacturing industry in the region. The company aims to build the first steelmaking facility in WA, which will use reduced iron as a key input for its electric arc furnace.

Currently, the company is developing an AU$3.0 billion Direct Reduced Iron (DRI) plant in Mullewa, Western Australia. The plant will utilise locally sourced iron ore to produce green steel. Initially powered by a combination of natural gas and green hydrogen, the plant plans to gradually increase the hydrogen proportion as it becomes economically feasible. The produced DRI will be processed into briquettes and exported to markets, such as Europe and Thailand through offtake agreements with Meranti Green Steel.

GreenSteel has partnered with Danieli as its principal technology partner. Danieli is a global leader in steelmaking technology and owner of commercially proven DRI solutions.

About the Remorse deposit

The Remorse deposit is a magnetite iron ore prospect within TEM’s Yalgoo Project in Western Australia. Recent drilling has revealed significant high-grade iron mineralisation, with assays showing up to 39% iron content. To further assess the deposit’s potential, Tempest plans additional drilling and metallurgical testing in the first quarter of 2025. The discovery of high-grade iron ore resources could position Tempest as a key supplier for the iron and steel industry.

TEM shares surge

Following the update, TEM’s share price surged by 20% to AU$0.006 per share at the time of writing on 7 February 2025.