Lincoln Minerals (ASX:LML) has submitted a proposal to develop a 1.1 billion tonne magnetite project, as part of the South Australian Government’s Green Iron and Steel Strategy.
The company, which has been operational on the Eyre Peninsula in South Australia for more than 15 years, says its Green Iron Project — formerly known as the Fusion Project — is “well placed” to meet the needs of the state government’s strategy to develop an end-to-end domestic green iron and steel supply chain.
It believes the project to be “the highest-grade undeveloped magnetite project in SA over 1 billion tonnes”, and highlights its proximity to both the deepwater Port Lincoln and existing power infrastructure, which provide “major logistics advantages”.
Lincoln also highlights its ability to build on previous studies for the Fusion Project, which were completed by a $75 million joint venture.
CEO Jonathon Trewartha says Lincoln’s Green Iron Project is “the best potential magnetite supply source” for the proposed supply chain.
“Based upon a review of current data, the project has an aspirational goal of producing 6 million tonnes per year of high-quality magnetite concentrate to supply both a domestic supply chain as well as potential for export tonnes to the global green steel industry,” Trewartha says.
“We are also commencing the next phase of our green iron partnering process, whereby we are seeking to engage with both domestic and global steel industry participants who seek to partner with Lincoln to develop this project.”
The South Australian Government’s comprehensive strategy is currently in its fourth stage. This stage includes engaging with various interested parties — including Lincoln Minerals — who have made expressions of interest (EOI) relating to their specific area of interest in the overall potential supply chain.
Post receipt of the EOIs, the government will review submissions and follow-up with respondents, prior to preparing an outcomes report which will inform the potential for various de-risking studies the government intends to conduct over the course of 2025, to assist in identifying key impediments.
Lincoln Minerals, which has a market capitalisation of $12.33 million, previously announced it has begun a partnering process for the project, which is underpinned by a 1.2 billion tonne magnetite resource.
Since announcing the partnering strategy, Lincoln Minerals has engaged with potential interested parties.
The company is now starting its own formal EOI process to identify interested parties to engage with to advance the project through to production and establish it as a key player in domestic and international green iron and steel supply chains.
Magnetite plays a crucial role in the production of ‘green steel’ due to its higher iron content and lower impurities, meaning it requires less iron ore and energy.
South Australia has an abundance of magnetite resources, extensive renewable energy, and significant planned investment in hydrogen production and water, making the state an attractive location to implement a strategy of this kind, according to the state government.
Adelaide-based Lincoln Minerals is focused on developing the Kookaburra Graphite Project on the Eyre Peninsula in South Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Lincoln Minerals
