Magnetite Mines has taken a significant step toward developing its flagship Razorback Iron Ore Project in South Australia by submitting a Mining Lease Proposal (MLP) to the state’s Department for Energy and Mining. This marks a critical milestone in the company’s efforts to establish a large-scale, premium magnetite mining operation capable of producing five million tonnes of high-grade magnetite concentrate per year. The submission reflects Magnetite Mines’ commitment to advancing the project in alignment with global demand for high-quality iron ore, particularly for the emerging green iron industry.
Strategic Location and Development
Situated approximately 240 kilometers northeast of Adelaide, the Razorback Iron Ore Project is located within the Braemar Iron Formation, an area recognized for its extensive magnetite resources. Over the past year, Magnetite Mines has conducted numerous studies to support the MLP submission, including environmental assessments, infrastructure planning, and baseline characterisation studies. These efforts underscore the project’s technical maturity and readiness for development.
Funding Secured for Progress
To ensure financial flexibility and facilitate the MLP submission, Magnetite Mines secured up to $7 million in funding. A portion of these funds was allocated for the submission fee, estimated at $560,000, demonstrating the company’s financial preparedness. With this capital in place, the project is well-positioned to transition into its next phase, focusing on securing necessary approvals and advancing development activities.
Alignment with Green Iron Initiatives
The timing of the Razorback Project’s advancement aligns with the recently announced Federal Green Iron Fund, which aims to support the production of low-emission steel. Magnetite Mines is positioning itself as a key player in this transformation by developing a long-term magnetite supply foundation that could contribute to the global shift toward greener steel production. The submission of the MLP is not only a step toward iron ore mining at Razorback but also an opportunity to establish a new mining province in Australia, with the potential to support sustainable iron production for decades.
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Water Supply Strategy and Unsolicited Proposal
In parallel with the MLP, Magnetite Mines has also submitted an Unsolicited Proposal to the South Australian Government regarding access to the Murray Basin saline wastewater resource. Securing a cost-effective and sustainable water supply remains a key priority for the company. Water access is a critical factor for mining operations, and Magnetite Mines is proactively exploring solutions that balance economic and environmental considerations.
Collaboration for a Sustainable Future
The Razorback Project is being developed in conjunction with Green Iron SA, a consortium that seeks to leverage South Australia’s abundant magnetite resources and renewable energy potential. The project follows a phased approach, beginning with magnetite mining at Braemar and leading to the production of export-grade pellets. A future direct reduced iron (DRI) plant at Port Pirie is also being considered, which could serve as a customer for the state’s hydrogen hub in Whyalla. By utilizing natural gas and, eventually, hydrogen, this initiative aims to significantly reduce carbon emissions in steel production.
Regulatory and Environmental Commitments
The MLP submission highlights Magnetite Mines’ commitment to meeting regulatory and environmental standards. Once approved, the mining lease will provide the company with secure tenure for construction, mining, and ore processing operations. The company has emphasized its dedication to sustainable mining practices, ensuring that the project contributes positively to the environment and the local community.
Economic and Employment Benefits
The development of the Razorback Project is expected to generate substantial economic benefits for South Australia. The project is poised to create job opportunities, support local businesses, and contribute to the region’s economic growth. Additionally, by focusing on high-grade magnetite production, Magnetite Mines aims to enhance Australia’s position in the global iron ore market while supporting the transition to cleaner steel production methods.
Pathway to Approval and Beyond
With the MLP now submitted, Mines will engage with regulatory authorities and stakeholders to secure the necessary approvals. The company remains focused on delivering long-term value to its investors and playing a crucial role in the global shift toward sustainable iron production. As the project progresses, Magnetite Mines continues to advance its vision of establishing the Razorback Iron Ore Project as a leading supplier of premium concentrate, reinforcing its position in the future of green steel.
