Tempest Minerals (ASX:TEM) has entered into a memorandum of understanding with privately held Green Steel and Iron to develop the Remorse magnetite deposit in Western Australia.
Both companies will explore the potential development opportunities for Remorse, primarily focusing on producing magnetite concentrate for use in green steelmaking processes.
The MoU includes maximising potential for Tempest to secure a local offtaker for its iron ore, planning for the engineering design of a pelletising and direct reduction plant, as well as developing a preliminary infrastructure plan.
Tempest plans to conduct various value accretive activities including production and metallurgical studies, as well as further drilling at the Remorse deposit.
Green Steel is currently developing a $3 billion Direct Reduced Iron (DRI) plant in Mullewa in the Mid West of Western Australia, which will produce green steel from local iron ore sources. This will initially be powered by a blend of natural gas and green hydrogen and the proportion of hydrogen may increase in time based on various economic considerations.
The DRI will be converted into briquettes and exported by offtake agreement to a number of potential destinations including Europe and Thailand via Meranti Green Steel.
Green Steel has partnered with Danieli, a global steelmaking leader, as its principal technology partner which is the owner of one of two commercially proven DRI technologies.
Tempest Managing Director Don Smith says the agreement is an “important” step in advancing Remorse.
“By partnering with a leader in green iron steel technologies, as well as a proven developer in the field, we aim to position Remorse as a near future supplier of high-grade iron ore for the rapidly evolving low-carbon steel industry,” Smith says.
Green Steel non-executive director Don Johnston says the Remorse deposit’s magnetite aligns with the company’s green steelmaking ambitions to create a national steel and iron processing company for the low carbon economy.
“This MoU with Tempest Minerals marks a significant step towards realising our vision of processing Western Australia’s vast reserves of iron ore and moving further towards steel making by producing hot briquetted iron suitable for electricity arc furnace steelmaking facilities globally,” Johnston says.
“By leveraging Western Australia’s abundant renewable energy resources and Tempest’s promising iron ore assets, we’re positioning ourselves at the forefront of global transition.”
The Remorse deposit, located within the Yalgoo Project, returned grades up to 39% iron. These results indicate the potential emergence of a substantial magnetite deposit with grades and tonnes in line with producing magnetite mines in Western Australia.
Green Steel is a 100% Western Australian company established in 2024 with the goal of creating a sustainable iron reduction and steel manufacturing industry in the state. It was founded by the same directors as Green Steel of WA, which is a part-owned subsidiary of Carbon Transition Pathways and aims to build WA’s first ever steel making facility through the Collie Steel Mill, which can also utilise the reduced iron as in input to its electric arc furnace.
Tempest Minerals will be exhibiting at this year’s Prospectors & Developers Association of Canada (PDAC) event being held from 2-5 March in Toronto, Canada.
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Write to Aaliyah Rogan at Mining.com.au
Images: Tempest Minerals
