Magnetite Mines Ltd (ASX:MGT) has completed extensive metallurgical test-work studies for the Razorback Iron Ore Project in South Australia, determining the processing flow sheet and optimising for ore body variability.
The company’s studies estimate iron ore grades above 68% iron from this flowsheet, above the direct reduction (DR) cut-off of 60% iron.
MGT’s test work also achieved premium iron concentrates above 70% iron content from Iron Peak samples.
Targeting a premium iron ore shortage
“Together with Hatch, we have now completed rigorous quality and suitability testing of our Razorback iron ore to DFS (definitive feasibility study) standards,” Magnetite Mines CEO Tim Dobson said.
“The work has confirmed that Razorback will produce Direct Reduction pellet feed (DR Grade) products that are needed to make steel using methods that generate lower carbon emissions.
“DR Grade feed demand is expected to increase more than 5-fold by 2050 in line with decarbonisation commitments made by the steel industry, however, the current supply outlook is scarce.
“DR Grade products already attract significant price premiums and a supply response is becoming urgent. Razorback will help fill that market gap in the years to come.”
No further testing on Razorback iron ore will be needed for the DFS, which MGT expects to attract high premiums in the decarbonising iron and steel industries.
“Hatch is very pleased to be partnering with Magnetite Mines on the Razorback Project, which represents a very exciting and significant iron ore development opportunity for Magnetite Mines to unlock value associated with the undeveloped Braemar Iron Ore Province in South Australia,” Hatch in Australia-Asia director of metals Claude D’Cruz said.
“We look forward with great energy and excitement to helping Magnetite Mines make the project a success.”