Magnetite Mines Ltd (ASX:MGT) has opted to connect its Razorback Iron Ore Project in South Australia’s undeveloped Braemar Iron Formation via an overhead transmission line to the National Energy Market (NEM).
A new major substation at Bundey, about 15 kilometres northeast of Robertstown, will be constructed as part of the South Australia-New South Wales electricity interconnector (formally known as Project Energy Connect).
MGT has identified and is engaging landowners along a 126-kilometre-long transmission line corridor for the power grid, which will be designed to reduce potential environmental and social impacts.
Proposed overhead transmission line alignment from Razorback to Bundey Substation.
Aiming for “green power”
MGT chief executive officer Tim Dobson said: “Power supply is a critical component of our plans for a larger-scale Razorback Project, and we are delighted to confirm that grid connection remains our best option, providing access to South Australia’s ‘green power’ transmission infrastructure, which is on track to supply 100% renewable energy by 2030.
“We have optimised our designs to take advantage of the new SA-NSW Interconnector to maximise supply reliability and maintain load capacity for future staged expansion.
“We have worked closely with (SA electricity network provider) ElectraNet to secure surety for our power transmission needs and are engaging with various providers to explore power supply on a ‘build-own-operate’ basis.
“This important step further aligns Magnetite Mines with the global transition to decarbonised steel, and places Razorback at the forefront of South Australia’s burgeoning high-grade iron ore industry as a potential new supplier for efficient, green steel production.”
Engagements and studies
MGT is currently completing a series of optimisation studies to determine the future configuration for a larger-scale Razorback Iron Ore Project. The studies are on track to be completed next month.
The company is also working closely with ElectraNet, who have confirmed that there will be sufficient supply capacity at the 330/275kV Bundey Substation connection point to meet the project’s forecast needs.
Further talks will be held to confirm the specific connection, network reliability and administrative requirements to enable connection into Bundey and ElectraNet’s network.
First-mover
The Razorback site is 240 kilometres north-east of Adelaide in South Australia’s undeveloped Braemar Iron province.
The Braemar hosts vast iron mineral resources that can potentially sustain high-grade iron ore production to meet the needs of the decarbonising iron and steel industries for decades.
MGT believes Razorback is the logical first-mover project in Braemar based on its scale and location to the Spencer Gulf port about 200 kilometres away.
It has the largest resource base at 6.0 billion tonnes and the only JORC-compliant ore reserve of about 473 million tonnes.
Once established with the necessary infrastructure, Razorback has the potential to help unlock further projects in Braemar.