Magnetite Mines Limited (ASX: MGT) has provided a progress update on its flagship, 100%-owned Razorback iron ore project, in South Australia’s Braemar province.
The company is completing a suite of high-value workstreams that have identified significant cost savings and validated infrastructure options in preparation for completion of the definitive feasibility study over the course of 2024.
Key points:
- Definitive Feasibility Study for optimised 5Mtpa base case targeted for completion in 2024
- Value Engineering in progress to deliver significant cost reductions prior to DFS completion
- Saline water processing under investigation; potential to reduce costs and simplify permitting
- Native Title negotiations to commence in September 2023
- Mining Lease Proposal to be lodged with South Australian government in Q1 2024
- Talks progressing with potential partners attracted to Razorback’s green iron potential
Commenting on the Razorback update, Magnetite Mines CEO Tim Dobson said:
“Since we announced the optimised 5Mtpa base case for development of our world-class, 100%-owned Razorback Iron Ore Project in March 2023, the MGT team has been refining all aspects of the Project with the objective of delivering a Definitive Feasibility Study suitable for a final investment decision.
“Our attention has focused on de-risking key infrastructure elements and identifying material cost reductions via value engineering to further improve the Project’s economics before we complete cost intensive, DFS-level engineering. We are also advancing permitting and Native Title agreement making.
“The optimisation of Razorback to a high-value, long-life, operation at an initial operational scale of 5Mtpa has been well received by potential strategic partners and customers. We recently updated our virtual data room to include all the information relating to the optimised base case, allowing selected parties to complete due diligence on Razorback’s new configuration ahead of transactional discussions.
“We are observing ever-increasing momentum towards a green steel future and have been working closely with the South Australian Government to establish a common vision for the establishment of ‘green iron’ production hubs in the State. Our objective is to time the delivery of Razorback to meet the emerging international investment opportunity and to supply the forecast demand for premium-grade iron ore products required by the decarbonising steel industry.
“I am pleased with the progress we are making for what will be a world-scale iron ore project. I look forward to updating shareholders as we diligently progress the completion of a DFS for Razorback.”
