This article is a sponsored feature from Mining.com.au partner Hawsons Iron. It is not financial advice. Talk to a registered financial expert before making investment decisions.
The Hawsons Iron Project, situated just 70km southwest of Broken Hill in New South Wales, is positioning itself as a cornerstone in the global green steel supply chain. With a recently completed Prefeasibility Study (PFS) outlining plans to produce 10–12 million tonnes of premium magnetite concentrate annually, Hawsons Iron (ASX:HIO) is targeting a product grade of greater than 68.5% iron — placing it among the highest globally.
Managing Director Tom Revy notes that this combination of scale, grade, and strategic location near existing infrastructure makes the project both ‘robust’ and ‘unique’.
Hawsons is positioning to bring a premium product to the green steel supply chain, with its 68.5%-plus product substantially higher than most other ores, including Vale SA’s (NYSE:VALE) iron ore from Carajás, which stands at 67% and is considered one of the highest quality concentrates globally.
Hawsons’ concentrate is a high-demand, high-value product, with global recognition of the need for green steel growing and the supply not even close to where it’s needed to fill future demand.
As Hawsons progresses toward a Feasibility Study later in 2026, the company is busy with a number of ongoing projects to help get to development.
Hawsons Iron Project
As Revy notes, Hawsons’ namesake project is incredibly ‘robust’ and ‘unique’ for this industry.
It holds a JORC-compliant 2.3 billion tonnes of probable reserves and has a production target of 257 million tonnes of magnetite concentrate across its 26-year mine life, with an average grade of around 68.6%.
The PFS was completed purely on the reserves, but Revy notes that the project itself has a total resource of more than 4 billion tonnes.
“So, we’ve presented a conservative case with significant upside,” Revy says.
As the company plans for the Feasibility Study, part of that will be to complete some infill drilling, which will extend that reserve as well as the overall mine life for the project.
“That will decrease the strip ratio, because at the moment that inferred material is regarded as waste,” Revy says.
“It will also significantly extend the mine life because we will then be incorporating a material component of the inferred resource into our final financial model.
“Those things will have a positive impact ultimately on our own final investment decision (FID) and on the financials associated with the project.”
Within that PFS itself, the Hawsons Iron Project highlights a pre-tax net present value at an 8% discount of $1.36 billion, with a cost to consumer of US$80 ($111.73) per tonne and a product price of US$140 per tonne, based on ore reserves only.
“This gives us a very healthy margin to allow for any issues, which may occur during the course of the development and operation of the project,” Revy says.
Revy points out that the project is unique in a number of ways, with its proximity to Broken Hill an incredible advantage.
“We’re not a stranded asset. We have access to a lot of local facilities, goods, and services, which we plan on utilising for the project,” Revy says.
“We have this excellent infrastructure surrounding us, with the project being just 40km from a heavy haul rail line, a nearby powerline — which is fed with a significant portfolio of renewable energy — and we also have access to an ample supply of water.
“Additionally, the city of Broken Hill is incredibly supportive, with a key investor base and interested stakeholders based there.”
Soft ore, dry processing, and chemical-free innovation
Hawsons’ iron is ‘incredibly soft’, which Revy explains is a huge benefit as it means it consumes 20–25% of energy compared to peers.
The company has also worked hard on fine-tuning the dry comminution, which is the crushing and grinding circuit, bringing its water demand down significantly.
“This has positive implications for operating capital and costs, as well as positive permitting and scheduling, because we’ve managed to decrease the power and water needed for the project.”
The other game-changing benefit is the overall processing approach, which uses chemical-free processing, once again reducing capital costs, water usage, and additional environmental benefits.
“Because there are no chemicals, from an environmental perspective, it’s very positive. This flows into licensing and permitting, and the benefits that we bring to the project and the region.”
Upside opportunities: Finding new ways to drive returns
Revy notes that Hawsons is currently undertaking two key options studies, one of which is a waste process management study, with the results to be released imminently.
What that study has found so far is the potential to decrease both capital expenditure and operational expenditure costs, which Revy notes is very encouraging.
The other ongoing study revolves around by-product production of hematite above and beyond the magnetite production.
“We’ve taken on a world-class flotation expert who is currently working with us on the recovery of hematite from slurries,” Revy says.
“To be able to produce more iron concentrate when you’ve already mined, crushed, and ground it, and to put in an additional step to remove that material, is certainly worthy of our time and money because of the potential impact it could have on increasing revenue from day one.”
Hawsons is also investigating potential downstream processing value-added options, in either phase one or phase two of the project, subject to test work and viability programs.
“The primary attraction of this value-add proposition is that the further you go downstream, the revenue doesn’t increase linearly — it actually goes up somewhat exponentially because it adds value and de-risks the ultimate player, the steel producer,” Revy says.
With so many elements currently in transition or under contemplation, Hawsons has a busy period ahead as it works to develop a vital product for the global future of green steel supply chains.
Global emissions challenge meets premium magnetite solution
With the steel and cement industries topping the list for biggest emissions industries globally (bar the emerging AI and tech industries which don’t have the same historical data), governments worldwide are committed to adopting greener and more environmentally sustainable production methods.
The World Economic Forum reported in 2022 that steel manufacturing produced around 8% of total global emissions, and as one of the largest single sources of carbon dioxide emissions, reducing emissions from steel is a key goal to achieving net zero by 2025 goals.
“Right now, green steel is being produced and sold at a premium, and steel buyers are willing to pay that premium,” Revy says.
Revy points to BMW and its aim to produce a green vehicle from raw materials through steel production. Earlier in 2026, BMW Group made an agreement with Thyssenkrupp Steel for the supply of recycled green steel for the production of selected car body parts.
There are other producers as well, including Stegra, a Swedish company primed to be the first net zero steel producer, with a plant now under construction that will use renewable electricity to generate green hydrogen for processing.
“Green steel is here, it’s real, and governments have to move toward net zero with these 2030, 2040, and 2050 targets in mind, and this is an integral part,” Revy says.
“As we move our development plans forward, we are getting international attention as a future part of the green steel supply chain.”
Revy notes that governments worldwide are now imposing penalties on non-green steel, primarily driven by the European Union’s Carbon Border Adjustment Mechanism, in addition to providing incentives like grants for downstream green investments.
“Projects shouldn’t have to rely upon grants and penalties to ultimately be attractive investments, but they have to start somewhere, and, as the momentum builds, I think you’ll find that costs will start to come down,” Revy says.
With momentum growing for green steel, Revy notes that there is plenty of room in the industry for more players. He notes that at a recent industry event in Dusseldorf, Germany, the sentiment was that by 2030 the demand for green steel will actually exceed the supply of the product. With that deadline just a few years away, the time is now for the industry to really gain traction.
Global endorsements and funding pathways
As reported, Hawsons recently announced a significant development with KfW IPEX-Bank for non-binding debt funding.
Out of the estimated $4 billion capital requirement, approximately $1.3 billion is tied to German and European equipment. Subject to Hawsons meeting key milestones, KfW IPEX-Bank has indicated that it would be prepared to fund up to 85% of that portion, which is a major endorsement of the project’s credibility and international appeal.
Alongside this, Hawsons is progressing multiple options studies, as previously noted, both of which are expected to deliver meaningful news flow in the coming months.
As the Feasibility Study progresses, the company has engaged Cutfield Freeman & Co of London as project finance advisers, bringing vast expertise in funding magnetite projects worldwide.
Operationally, Hawsons is evaluating the replacement of diesel trucks — currently moving 90 million tonnes of waste — with a large-scale conveying system. This innovation is expected to deliver substantial financial benefits while reducing exposure to volatile fuel markets and the geopolitical risks tied to diesel supply.
Revy underscores that Hawsons is well placed to capitalise on the current global move toward greener steel supply chains.
“It’s not a pipe dream. Internationally, green steel is here and now, and very high on the agenda. With our location, infrastructure access, and focus on reducing capex and opex while increasing revenue, Hawsons is positioned as a once-in-a-lifetime material opportunity.”
With robust reserves, strong financials, and international endorsements, Hawsons Iron is looking to advance toward a prime investment opportunity in the green steel supply chain.
Write to Amy Rotman at Mining.com.au
Images: Mining.com.au and Hawsons Iron
