Magnetite Mines Ltd has formally lodged a Mining Lease Proposal (MLP) with the South Australian Department for Energy and Mining (DEM) for its flagship Razorback Iron Ore Project, a big step towards the project's development as a long-term supplier of high-grade magnetite for green iron production.
Critical milestone
Magnetite Mines managing director Tim Dobson said: “We are delighted to have reached this critical milestone for Razorback, setting in motion the development pathway for our flagship project.
“Our team and consulting partners have completed a comprehensive and high-quality MLP submission commensurate with the large-scale, long-life aspects of our future Razorback mine.
“Razorback’s development timing is well positioned to coincide with both the emerging international demand for premium-grade iron ore concentrates and the green iron industry ambitions of State and Federal Governments, recently underlined by a Federal billion-dollar Green Iron Fund announcement.
“The MLP submission represents not only the starting line for iron ore mining at Razorback, but the opening of an entire new Australian mining province with the potential to support green iron production and export for generations into the future, and the profound economic prosperity that comes with that.”
Razorback is 240 kilometres northeast of Adelaide, within the Braemar Iron Formation, and is designed to produce five million tonnes per annum (Mtpa) of direct reduced (DR)-grade magnetite concentrate.
Low-emission steelmaking
The project will target the growing global market for low-emission steelmaking inputs.
The MLP covers detailed technical, environmental and social assessments across nearly 900 pages and is aligned with South Australia's Mining Act 1971.
The proposal also includes applications for four Miscellaneous Purposes Licences (MPLs) to accommodate supporting infrastructure such as haulage roads, an intermodal facility at Hillgrange, power transmission and accommodation facilities.
The company’s mine plan outlines an initial 38-year operation with a projected 56-year life of mine, and the potential to extend production to 91 years based on existing resources.
Razorback's development is well-timed with recent 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.
Magnetite Mines is positioning itself as a first-mover in establishing a foundational magnetite supply chain for these initiatives.
Processing will be based on conventional magnetite beneficiation methods – crushing, grinding, magnetic separation, flotation and filtration – producing an average of 5.2 Mtpa of high-grade concentrate.
A coastal desalination plant and a 125-kilometre transmission line are proposed to supply water and electricity, respectively.
What's next?
Pending approval, the mining lease will provide secure tenure for construction and operations.
A separate Program for Environment Protection and Rehabilitation (PEPR) will be submitted following grant of the lease, detailing the operational conditions under which the project will proceed.
DEM will now assess the validity of the MLP before opening a public consultation period.
Subject to assessment outcomes and stakeholder feedback, approval may take a minimum of six months.
Magnetite Mines has also initiated a parallel Commonwealth environmental approvals process under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), which is now delegated to DEM through an accredited assessment process.
Magnetite Mines continues to engage with local councils, Traditional Owners and regional communities and says it is committed to transparent and sustainable development.