Magnetite Mines Limited (ASX: MGT) has received approval from the South Australian Cabinet to progress to Step 2 of the State’s Unsolicited Proposal process for the company’s application to access wastewater from the Stockyard Plains Salinity Management Basin (SPSMB).
The Unsolicited Proposal relates to one of two preferred water supply options for the Razorback iron ore project. Up to 10 gigalitres per year of water is required to process magnetite-bearing ores into 5Mtpa of value-added, premium-grade iron ore concentrates for use in low-carbon steelmaking.
This approval enshrines an exclusive negotiation period during which the company will develop a business case in conjunction with the SA Government. Exclusivity provides Magnetite Mines with a high level of assurance and confidence to proceed with technical design and environmental assessment programs. A dedicated Case Manager has also been appointed by the SA Government.
Commenting on the award of the exclusive negotiation rights, CEO Tim Dobson said:
“For more than 30 years, salinity levels in the Murray River have been government-managed by extracting salty groundwater using an array of bore pumps alongside the river and discarding it to evaporation ponds with no beneficial use. Using this wastewater for value-adding to South Australia’s mineral resources makes logical sense and has potentially profound environmental benefits.
“We have been working closely with the SA Government this year, aligning our business plan to develop high-grade iron ore production in the Braemar with the Government’s emerging strategy to create a green steel industry in the State on a foundation of renewable energy and green hydrogen production.
“This approval by the SA Government Cabinet to advance our proposal to access this wastewater source, with exclusive negotiating rights, is extremely encouraging and represents the first material support by the SA Government for Razorback ahead of the planned submission of our mining lease proposal in the new year.
“Being acutely aware of the arid environment in which we will operate, we take our water stewardship obligations seriously. Beneficially using wastewater from Murray Basin salt interception schemes would contribute to a circular economy and is fully aligned with the intent and spirit of our leading ‘foresight’ sustainability platform.”