Magnum Mining and Exploration (ASX:MGU) has completed an engineering study into the technical and economic viability of developing a ‘green, high purity’ pig iron (GHPPI) Project in Saudi Arabia.
The $22.66 million market capitalisation company says the facility will use ‘high-grade’ magnetite concentrate from its wholly owned proposed mine and beneficiation plant in Nevada, US.
Locally sourced steel mill waste will also be used to capitalise on Saudi Arabia’s drive for low emissions steel production.
The study was undertaken to provide a reasonable estimate of capex and opex for the HIsmelt facility in Saudi Arabia using the proposed Buena Vista Iron Mine magnetite concentrate. Buena Vista sits about 160km east-northeast of Reno in Nevada.
The HIsmelt technology was originally developed by Rio Tinto (ASX:RIO) over the period from 1982 until 2017 with a view to smelt high phosphorous haematite iron ore fines using non-coking coals as the reductant.
According to Magnum, the study estimates a capital requirement of about US$410 million at a plus 50% study accuracy.
An additional US$82.4 million is estimated for the BioChar facility in Malaysia, where waste palm oil biomass will be converted to biochar and used in the iron reduction process.
Magnum reports it has also entered into a memorandum of understanding (MoU) with Saudi Arabia-based Middle East for Metallic Industrial (Midmetal).
Under the MoU, Midmetal will seek to become a 50:50 partner in the project to facilitate access to existing steel mills in Saudi Arabia.
Midmetal will also potentially manage the establishment of the facility at the King Fahad Industrial Port and procure customers for the HIsmelt product.
Magnum will work to formalise agreements with biochar suppliers in Malaysia and Southeast Asia, as well as agreements for iron ore and steel plant waste materials supplies in the meantime.
The proposed project engineering, procurement, and construction is expected to take about 24 months after the final investment decision is made.
Magnum Mining and Exploration is an Australia-based company engaged in iron ore concentrate and green pig iron production. As of 30 September 2023, Magnum Mining and Exploration had $3.595 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Magnum Mining and Exploration
