- Magnum Mining and Exploration (MGU) will acquire Appalachian Iron to access new pig iron-producing technology
- Appalachian Iron has the right to enter into a formal license agreement for the use of the HIsmelt technology
- Magnum plans to implement this technology to develop a green pig iron plant at its Buena Vista magnetite project in Nevada
- The company says the benefits of the HIsmelt process include reduced carbon emissions, greater raw material flexibility, lower operating and capital costs, and a premium-quality final product
- Magnum shares are trading 17.14 per cent higher at 41 cents at 2:44 pm AEDT
Magnum Mining and Exploration (MGU) will acquire Appalachian Iron to access new pig iron-producing technology.
Appalachian Iron has the right to enter into a formal license agreement for the use of the HIsmelt technology.
Magnum plans to implement this technology to develop a green pig iron plant at its Buena Vista magnetite project in Nevada.
The company said the benefits of the HIsmelt process included reduced carbon emissions, greater raw material flexibility, lower operating and capital costs, and a premium-quality final product.
The Appalachian acquisition was executed by Magnum’s recently-appointed CEO, Neil Goodman, who is also the CEO and sole shareholder of Appalachian Iron.
Mr Goodman said he had been working in the pig iron industry for 40 years.
“Pig iron is a valuable commodity these days because in modern consumer society, all the scrap material is recycled, and the recycling of steel includes copper,” Mr Goodman said.
“Copper is a contaminate for steel, it makes it weak,” he explained.
“To purify the scrap, especially in America, virgin iron units or clean iron units need to be added, and pig iron is the preferred choice.”
Mr Goodman spent 13 years managing the technical design, development, operation, and marketing of the HIsmelt technology.
Additionally, he currently holds the role of Director for the HILT CRC, which supports collaborative research efforts to assist the decarbonisation of Australian iron/steel, alumina/aluminium, and cement and lime producers.
Magnum said a technology assessment report revealed that the HIsmelt technology produced the highest net present value for the conversion of magnetite to pig iron.
Alongside Magnum’s plans to implement the tech into the Buena Vista project, Appalachian is planning to use the tech in an iron ore project in West Virginia, which is still in the conceptual phase.
To further development of this project, Appalachian has entered a number of non-binding agreements for existing land access in the US and the offtake of future pig iron.
Magnum shares were trading 17.14 per cent higher at 41 cents at 2:44 pm AEDT.