- Magnum Mining has provided a progress update while confirming that it is on track to become a leading producer of green iron products in the USA.
- Magnum is well-positioned to take advantage of rapidly increasing demand for high-value green HBI (hot briquetted iron) and PI (pig iron), both attracting premium prices.
- The Stock MGU closed posting considerable gains on the ASX.
On Tuesday, Australia-based mineral exploration company Magnum Mining and Exploration Limited (ASX:MGU) provided a progress update with Magnum confirming it is on track to become a leading producer of green iron products in the USA.
The Company stated that the initial mine plan and pit design for Magnum’s Buena Vista green iron project has been completed.
Today’s announcement revealed:
- MGU has purchased more than 104 acres of land adjacent to the main railway line and interstate highway at the Buena Vista Project. This land will be developed to become the logistic hub for the stockpiling and distribution of the Company’s iron ore, HBI and pig iron products.
- The test work for the primary and secondary crushing and screening of mined ore has been completed as planned. Initial results have confirmed that the iron ore at the Buena Vista Project is easily crushed and sized, ready for further processing at Magnum’s magnetic beneficiation plant.
- Magnum is in the process of producing it's first green sponge iron/ direct-reduced iron (DRI) sample products using 100% biochar. In China, the trial rotary kiln production of green sponge iron / DRI produced from the Company’s Buena Vista iron ore is underway.
- The Buena Vista Project is strategically located to supply US West Coast steel producers as customers or joint venture partners with potential steel producers. Using the HBI product from the test work program, Magnum will meet with potential domestic customers. While product quality will be the focus, the Company will also have pricing discussions.
The Company is ideally placed to supply the strong US domestic steel market. There is a current and forecasted shortage of green pig iron supply in North America. With its own low-cost in-house iron ore and abundant local biomass supply, Magnum remains on track to achieve its vision to be a highly profitable producer of green iron and to achieve this in a relatively short timeframe serving rapidly growing markets.