Magnum Mining and Exploration (ASX:MGU) has struck a memorandum of understanding (MoU) with Saudi Arabia-based Middle East for Metallic and Industrial (Midmetal) over the Buena Iron Project in Nevada.
The MoU forms the basis for the two companies to negotiate a ‘strategic alliance’ for Magnum’s proposed magnetite mine and processing plant at the Buena project. Magnum will also work the Midmetal to pursue the development of HIsmelt facilities in the US.
While still in the early stages of negotiation, the potential partnership envisaged under the MoU will see Midmetal become a magnetite offtake customer as a partner in developing the Buena Vista mine and beneficiation plant.
Ultimately, Midmetal and Magum aim to work together to pursue the development of green pig iron production projects in North America, Saudi Arabia, and other regions, through HIsmelt technology.
Shares in Magnum Mining and Exploration have risen 6.45% to $0.033 as of 3:20pm AEST on Friday 1 September.
Speaking on the MoU with Midmetal, Magnum CEO Neil Goodman says: “This tie-up with Midmetal is an exciting development in the Buena Vista and West Virginia story.
“Saudi Arabia’s diversification out of petroleum presents a compelling opportunity in established markets“
Saudi Arabia’s diversification out of petroleum presents a compelling opportunity in established markets. Magnum looks forward to working with Midmetal to developing a mutually beneficial relationship.”
Midmetal is working to use the latest technologies to produce pig iron in Saudi Arabia under the country’s Nasaned Initiative, which prioritises tech that can help achieve the ‘Saudi Vision 2030’ plan.
HIsmelt technology is designed to deliver high-purity pig iron without the need for slow and expensive hydrogen reduction techniques. HIsmelt uses biochar, which is sourced from renewable biomass, as an iron reductant.
Magnum holds a conditional HIsmelt patent application licence from China-based Shandong Molong Petroleum Machinery and Shandong Province Metallurgical Engineering that allows Magnum to construct and operate HIsmelt plants.
Write to Joshua Smith at Mining.com.au
Images: Magnum Mining and Exploration