A new consortium called Green Iron SA has been launched to accelerate the establishment of a green iron industry in South Australia.
The consortium comprises iron ore-focused Magnetite Mines (ASX:MGT), freight rail transport company Aurizon Holdings (ASX:AZJ), Flinders Port Holdings, and global engineering company GHD.
Green Iron SA aims to harness the untapped potential of the state’s Braemar iron region, combined with its renewable energy capacity, in order to position South Australia as a “leader” in the low-carbon steel supply chain.
A phased development pathway has been proposed, which will enable the necessary foundations to be put in place to ensure the creation of a green iron industry in the state is sustainable.
The consortium will start by accelerating the development of Magnetite’s Razorback Iron Ore Project, which will help create a secure supply of high-purity magnetite, a feedstock critical to the production of green iron.
Following this, the project will progress to the production of direct reduction grade pellets, and ultimately manufacturing and exporting direct reduced iron in the form of hot briquetted iron from Port Pirie by the early 2030s.
Magnetite Mines Managing Director Tim Dobson says the time has come for South Australia to take advantage of its massive magnetite endowment.
“With 6 billion tonnes of magnetite resources ready to mine, Magnetite Mines is excited to take this important step toward building a world-class green iron industry in South Australia,” Dobson says.
“The Razorback Iron Ore Project will play a pivotal role in supplying the high-grade feedstock necessary for green iron production, which is set to become a key export commodity, supporting our balance of trade as Australia transitions away from fossil fuel exports.
“This project not only aligns with global decarbonisation goals, but also positions South Australia as a leader in sustainable mining and green iron production.”
By using natural gas and green hydrogen when available, Green Iron SA seeks to address the need to reduce carbon emissions in global steel production, and in doing so, deliver economic benefits to the Upper Spencer Gulf region.
To realise its vision, Green Iron SA is calling for the government to collaborate to remove key infrastructure barriers in the areas of water, power, and logistics.
The South Australian Government’s green iron and steel strategy is focused on enhancing the state’s comparative advantages, establishing local green steel industry foundations, and ensuring a sustainable, long-term industry and shared prosperity.
Green Iron SA is a consortium of like-minded industries committed to establishing and acceleration of green iron production and export capability in South Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Magnetite Mines
