Magnetite Mines is working to transform the steel industry through its Razorback iron ore project in South Australia.
South Australia is helping reshape the world’s steel industry and its economic future as the state ambitiously works toward decarbonisation.
And there’s one project that stands out as a critical pillar in this green transition: the Razorback iron ore mine.
The project has the backing of Green Iron SA, a consortium comprising its owner Magnetite Mines, construction and engineering company GHD, freight rail transport company Aurizon and Flinders Ports.
The days of utilising carbon-based materials to create steel may soon be behind us, as Green Iron SA looks towards producing sustainable, carbon-free iron by using green hydrogen and magnetite.
Green Iron SA spokesperson and Magnetite Mines managing director Tim Dobson said Australia holds lots of magnetite, which hasn’t been economic up until now.
“South Australia finds itself in a very fortunate position in that it already hosts the biggest magnetite reserves in Australia and has three different regions that contain massive amounts,” he said.
The state’s commitment to renewable energy has already positioned it towards a sustainable future and by 2027, SA plans to power its entire grid with 100 per cent renewable energy, having already reached 75 per cent through wind and solar.
“It’s then that you have the ability to make the magnetite concentrate and producers can use the renewable energy to make green hydrogen,” Dobson said.
“After that, you have what is needed to make green iron, which is going to be a very sought-after and profitable commodity for South Australia.”
Image: Green Iron SA
A key player in this emerging green iron industry is the Razorback project, located in the Braemar region of SA.
Razorback is Magnetite Mines’ flagship project, containing 3.2 billion tonnes of magnetite ore and two billion tonnes of probable ore reserves.
“It’s quite a large and spectacular project that will sustain 50 to 60 years of operations just on its first reserve,” Dobson said. “We’re expecting at least 100 years of production ahead at a very substantial scale. This project is set to be an economic game-changer not only for the region, but for the state.
“It will add significantly to Australia’s balance of trade and export incomes as we move forward.”
Dobson said Magnetite Mines has owned this project for over 15 years, at first to produce concentrate for sale overseas.
So how exactly will Razorback support sustainable steelmaking?
Dobson said magnetite can produce an almost-pure iron oxide product by processing it at the mine site using its magnetic properties.
He explained the plan is to dig the magnetite out of the ground, move it into a processing plant, remove all of the impurities using magnetic separation to produce a pure product, and use that to make green iron using hydrogen.
“There are no impurities involved, and this is the differentiator between magnetite and hematite (a traditional steelmaking material) which uses copious amounts of coal and hence emits copious amounts of carbon dioxide,” he said.
“This is the shift to magnetite. It’s not new, it’s been processed for 150 years and there’s five magnetite mining operations already in Australia.
“The difference now is that our project is massive. It will support up to 100 years of production and has the ability to produce this very high quality concentrate.”
One of Razorback’s key advantages is its proximity to existing rail and port infrastructure, with the project located only 50km from an open access railway line.
Dobson described this as a fortunate coincidence as iron ore projects typically need to be moving very large tonnages to be profitable.
“Building rail into mining projects is usually one of the most expensive capital items, so the fact we only have to move our material 50km to get it onto a railway line and then move it to port is great,” he said.
The material will then be transported to either Port Pirie or Whyalla, two critical export hubs in SA.
To fast track the development of the Razorback project, a consortium has been launched with Magnetite Mines, Aurizon Holdings, Flinders Port Holdings and GHD.
Australia’s largest rail operator, Aurizon, is tasked with transporting the magnetite. Flinders Port will then facilitate the export of the material with GHD providing essential technical and engineering support. Magnetite Mines is the downstream customer of not only the magnetite, but also future green iron.
The consortium aims to supply high-purity magnetite to produce green iron. The project will then progress to the production of direct reduction (DR) grade pellets, before manufacturing and exporting direct reduced iron (DRI) in the form of hot briquetted iron (HBI) from Port Pirie.
The creation of a new green iron industry will deliver economic benefits to the Upper Spencer Gulf region, including long-term job creation and community revitalisation.
Magnetite Mines’ product will be in high demand from international steelmakers, including JFe Shoji, the trading arm of Japan’s second largest steelmaker, with which the company recently signed an offtake partnership.
“They are seeking new a supply chain to decarbonise their steel operations in Japan as one of the bigger and more successful steelmaking nations,” Dobson said.
“With our first partnership being solidified now, we’re also talking with other Japanese partners, and other partners from countries such as Taiwan, Korea, India and China.
“They’re our logical partners, and all of them are trying to decarbonise, and therefore all of them need magnetite.”
The SA Government has shown strong support for the Razorback project, with both State and Federal Governments recognising its economic and environmental potential.
Magnetite Mines is set to hand its mining lease proposal into the SA Government, which will trigger the formal regulatory and approvals process to receive permission to mine.
“The government is quite enthusiastic because the economic shift that we’ll get from building a green iron industry is phenomenal and necessary,” Dobson said.
While the support remains strong thus far, Dobson and his team hope for more backing, particularly in the form of material support.
“We’ve been talking with the Federal Government to support this new industry by providing funding infrastructure so the SA Government,” he said. “This can help build things like roads, rail, power lines and port facilities, which can move these projects along and help get them to market.
“This is a shared responsibility between government and the private sector – one that will provide thousands of jobs and help keep our standard of living in Australia where it should be: at a very high level.”
For Australia to seize its green iron opportunity, Dobson believes it will take strong collaboration between miners, Australian industry providers, downstream international steelmaking customers and all levels of government to move projects forward.
Looking toward the future, Magnetite Mines’ priorities include securing the necessary mining approvals to formalise partnerships and at least one other partner to support funding and offtake agreements.
These priorities will allow a feasibility study to be completed to enable the Razorback project to progress from construction and into operations.
Green Iron SA is ushering in an exciting opportunity for South Australia and the country, and as the world transitions away from fossil fuels, the consortium has the chance to lead a new era of green innovation.
