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Highlights
- Magnetite Mines (MGT) progresses with Mining Lease Proposal for Razorback.
- Razorback project aligns with green iron and steel initiatives.
- Comprehensive assessment completed, public consultation phase pending.
Magnetite Mines (ASX:MGT) has taken a significant step forward by submitting a Mining Lease Proposal (MLP) for its Razorback Iron Ore Project. This submission to the South Australian Department for Energy and Mining marks a pivotal development for the project, aimed at becoming a sustainable supplier of high-grade magnetite.
Tim Dobson, the managing director, expressed satisfaction with reaching this critical milestone, initiating the pathway towards the development of Razorback. The project, positioned 240 kilometers northeast of Adelaide in the Braemar Iron Formation, plans to produce five million tonnes per annum of direct reduced-grade magnetite concentrate.
The timing of Razorback’s development coincides with rising global demand for premium-grade iron ore concentrates. This demand is further supported by both State and Federal Governments, underscored by a recent billion-dollar Green Iron Fund announcement aimed at fostering the green iron industry.
The MLP encompasses nearly 900 pages of detailed technical, environmental, and social assessments, ensuring compliance with South Australia's Mining Act of 1971. The proposal also includes applications for four Miscellaneous Purposes Licences, required for essential infrastructure such as haulage roads, power transmission, and accommodation facilities.
Magnetite Mines outlines a mine plan that spans an initial 38 years with the potential to extend to 91 years based on current resources. The project is strategically positioned to contribute to national and state-level green steel initiatives, including the Australian Government’s A$1 billion Green Iron Fund and South Australia's Green Iron and Steel Strategy.
Processing methods at Razorback will involve conventional techniques like crushing, grinding, magnetic separation, flotation, and filtration, aiming to produce an average of 5.2 million tonnes per year of high-grade concentrate. Additional infrastructure, such as a coastal desalination plant and a 125-kilometre transmission line, are proposed to meet the project’s water and electricity needs.
Following the MLP submission, the next steps include securing approval for the mining lease to commence construction and operations. A separate Program for Environment Protection and Rehabilitation (PEPR) will be submitted after the lease grant, outlining operational conditions.
The South Australian Department for Energy and Mining is set to assess the MLP before initiating a public consultation period, with approval potentially taking at least six months. Concurrently, Magnetite Mines is engaging in a Commonwealth environmental approvals process under the Environment Protection and Biodiversity Conservation Act.
Through ongoing engagement with local councils, Traditional Owners, and regional communities, Magnetite Mines commits to a transparent and sustainable approach in developing the Razorback project, setting a new standard in green iron production.
