- Magnetite Mines (MGT) enters an agreement with SIMEC Mining’s Whyalla Ports to investigate export options for its Razorback iron ore project in South Australia
- The company previously selected the Whyalla port as its preferred port option for the Razorback project due to its location and facilities
- The port lies 200 kilometres from Razorback and is the only port in the state with the capacity and facilities for “material” iron ore exports
- Magnetite Mining CEO Tim Dobson says the agreement is an “important step” in the development of the Razorback project
- MGT shares close 8.54 per cent higher at 44.5 cents on Monday afternoon
Magnetite Mines (MGT) has signed a memorandum of understanding (MOU) with Whyalla Ports to investigate export services for its Razorback iron ore project in South Australia.
Whyalla Ports is part of the GFG Alliance and is managed by SIMEC Mining. It currently exports over nine million tonnes of iron products per annum from an integrated facility on the northwestern coast of the Spencer Gulf.
In a 2021 pre-feasibility study, Magnetite Mines selected the Whyalla port as the preferred port for its Razorback project as it lies 200 kilometres away via rail and is a low-capital option.
Whyalla Port is also the only port in South Australia with the capacity for “material” iron ore exports without the need for significant infrastructure development, according to MGT.
Today’s non-binding agreement will examine the receival, storage, materials handling, ship loading and transhipment of high-grade magnetite concentrates within the range of five to 10 million tonnes per annum.
Magnetite Mining CEO Tim Dobson said the agreement with SIMEC Mining was an “important step” in the development of the Razorback iron ore project.
“MGT and SIMEC Mining both share aspirations to contribute significantly to the urgent decarbonisation of the steel industry, taking advantage of South Australia’s unique attributes with respect to renewable energy, large-scale magnetite resources and supportive stakeholders,” Mr Dobson said.
The companies are yet to negotiate the length of the MOU.
MGT shares closed 8.54 per cent higher at 44.5 cents on Monday afternoon.