Cyclone Metals Ltd (ASX:CLE) CEO Paul Berend joins Proactive’s Tylah Tully to discuss how it has started small-scale production of direct reduction (DR) grade pellets at its Iron Bear Project in Canada.
These pellets are critical for producing low-carbon steel, particularly green steel. The company has received positive results from pilot plant test work that yielded high-quality magnetic products.
Cyclone is also exploring large outcrops of potential haematite direct shipping ore (DSO) and magnetite identified during recent field geological surveys. Additionally, 18 tons of sediment have been sent to the lab for further testing.
Berend expressed optimism about the demand for DR pellets due to expanding DR steel production facilities globally. Cyclone is coinfident of meeting development goals, including establishing a joint venture to fund the project’s advancement.
The company is also testing different chemical compositions of DR pellets, with results expected soon. Phase 4 pilot test work is underway and Cyclone anticipates starting negotiations for offtake agreements with customers by the end of 2024 for concentrates and in early 2025 for pellets.
Fieldwork also continues with potential discoveries outside the current mineral resource estimate of 16.6 billion tons of iron.