Magnum Mining & Exploration (ASX:MGU) has entered into a memorandum of understanding (MoU) with Levin-Richmond Terminal Corporation, operators of a rail terminal and port facility located in Richmond, California.
The port and its existing train unloading and ship loading infrastructure is connected directly by rail to Magnum’s wholly owned Buena Vista Iron Project in Nevada, US.
Magnum is planning to produce direct reduction iron grade concentrate at Buena Vista.
The company says diligence will be undertaken as a prelude to negotiating a definitive agreement.
Magnum is pursuing options that seek to bring Buena Vista Iron Mine online in the shortest and most economical way possible. The mine is being designed to produce direct reduction iron grade concentrate.
DRI feeds are in increasing demand as steel mills seek to reduce their emissions by moving to low carbon technologies. Very high-grade iron, which can currently only be sourced easily from magnetite ore, is a critical feed for those technologies.
Magnum holds a licence to build and operate a HIsmelt plant, an industry disrupting technology that will produce green pig iron through the use of renewable biomass
The MoU is a preliminary, non-binding understanding that will form the basis for due diligence investigations by both parties with the aim to progress to a definitive agreement.
Magnum may withdraw from the MoU without reason, obligation, or liability at any time. The MoU does not include any details about possible terms of any future agreements and all terms are subject to negotiations between the parties.
Write to Adam Orlando at Mining.com.au
Images: Magnum Mining & Exploration