Cyclone Metals Starts Direct Reduction Pellet Production at Iron Bear

September 10, 2024 05:10 PM AEST | By Team Kalkine Media

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Cyclone Metals Starts Direct Reduction Pellet Production at Iron Bear — Image source: shutterstock

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Cyclone Metals Ltd (ASX:CLE) has commenced small-scale production of direct reduction (DR) grade pellets at its Iron Bear Project in Canada, as reported by CEO Paul Berend in a recent discussion with Proactive’s Tylah Tully. These DR grade pellets are essential for the production of low-carbon steel, particularly in the green steel sector. The pilot plant test work has already produced high-quality magnetic products, reflecting positive initial results.

In addition to pellet production, Cyclone is actively exploring large outcrops of potential haematite direct shipping ore (DSO) and magnetite that were identified during recent geological surveys. The company has also dispatched 18 tons of sediment samples to the laboratory for further analysis, which will provide additional insights into the project’s resources.

Berend highlighted the growing global demand for DR pellets, driven by the expansion of DR steel production facilities. Cyclone is optimistic about its ability to achieve its development milestones, including forming a joint venture to support the project's progress.

The company is also in the process of testing various chemical compositions of DR pellets. Results from these tests are anticipated shortly. Phase 4 of the pilot test work is underway, and Cyclone plans to initiate negotiations for offtake agreements with potential customers by the end of 2024 for concentrates and early 2025 for pellets.

Fieldwork continues with the aim of uncovering additional discoveries beyond the current mineral resource estimate of 16.6 billion tons of iron. This ongoing exploration is expected to enhance the project’s overall resource base and further support its development.

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