Magnetite secures water supply negotiation rights

Magnetite Mines (ASX:MGT) has received approval from the South Australian Cabinet for the access of a discarded Murray Basin wastewater source for its magnetite processing at the Razorback Iron Ore Project. 

Cabinet has approved a 6-month exclusive negotiation period for the proposal. Exclusivity provides the $23.41 million market capitalisation company with a high-level of assurance and confidence to proceed with the technical design and environmental assessment programs. 

The wastewater source at the Murray Basin is one of two water supply options with potential to supply Magnetites’ planned 5 million tonnes per annum (Mtpa) operations at the Razorback project. 

Magnetite says this approval enshrines an exclusive negotiation period, during which will develop a business case in conjunction with the South Australian Government. 

The company proposed actions across 4 key pillars, including access to produced wastewater, access to land, regulatory assistance, and funding opportunities. These are all a part of the company’s initiatives to de-risk project infrastructure solutions and facilitate project partnering. 

Magnetite Mines Chief Executive Officer (CEO) Tim Dobson says: “For over 30 years, salinity levels in the Murray River have been government-managed by extracting salty groundwater using an array of bore pumps alongside the river and discarding it to evaporation ponds with no beneficial use. Using this wastewater for value-adding to South Australia’s mineral resource makes logical sense and has potentially profound environmental benefits. 

We have been working closely with the South Australian Government this year, aligning our business plan to develop high-grade iron ore production in the Braemar with the government’s emerging strategy to create a green steel industry in the state on a foundation of renewable energy and green hydrogen production. 

This approval by the South Australian Government Cabinet to advance our proposal to access this wastewater source, with exclusive negotiating rights, is extremely encouraging and represents the first material support by the South Australia Government for Razorback ahead of the planned submission of our mining lease proposal in the new year.”

Magnetite Mines is an iron ore company, focused on developing magnetite iron ore resources in the Braemar iron region of South Australia. As of 30 June 2023, the company had $5.1 million cash at hand, according to its latest quarterly report.

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Images: Magnetite Mines
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.