Magnetite Mines joins South Australian green iron consortium

Magnetite Mines (ASX:MGT) has joined a consortium including GHD, Aurizon Holdings, and Flinders Port that’s aiming to accelerate SA’s green iron industry.

Green iron refers to iron produced and exported with lower greenhouse gas emissions when compared to iron made using traditional arc furnace or smelter tech. The move comes ahead of Scope 3 reporting requirements next year.

The consortium – Green Iron SA (GIS) – intends to turn the state’s Port Pirie into a “green iron hub” where green iron will ultimately be pellet-based. The Braemar iron region in SA, Magnetite Mines wrote on Tuesday, offers the state a unique chance to exploit its magnetite reserves in an ESG-friendly fashion.

Unsurprisingly, MGT is keen to see its 100% owned Razorback iron ore project involved in what it calls the state’s “green iron revolution.”

Of course, it’s early days. For this plan to pull off, GIS would need to see critical infrastructure ‘fast-tracked’ and to this end it has “called for partnership” with the Federal Government.

“The time has arrived for South Australia to take advantage of its massive magnetite endowment. With six 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,” Magnetite Mines MD Tim Dobson said.

“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.”

Much talk of green steel and green iron in recent years overlapped with the green hydrogen thematic which was a ghost revived in name by our Federal energy minister on Monday, but not by much else.

Shell and other majors are pulling out of Green Hydrogen projects; Twiggy Forrest recently wound up FFI back into his main iron company.

MGT last traded at 17cps.

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