While this has proved a truly decisive year for iron ore project developer Magnetite Mines (ASX:MGT), 2021 could be even bigger.

Australian iron ore is fuelling an infrastructure and property boom in China, where hungry steel mills are producing more than 90 million tonnes a month.

Mining giants like Fortescue (ASX:FMG) and Rio Tinto (ASX:RIO) are struggling to keep up with demand — and it shows.

Prices are currently testing multi-year highs.

Enter the new generation of iron ore miners like Magnetite Mines (ASX:MGT) which is developing the mammoth 4-billion-tonne, high grade Razorback magnetite mine in South Australia.

Magnetite is now working on a mine development plan which is “realistic, low capital and quick to market”, chairman Peter Schubert says.

The company is aiming to ship its first ore in 2024.

“We have made great progress in defining an effective and efficient development pathway to bring the Razorback high grade iron ore project into production and we are convinced that this will offer attractive returns for shareholders,” Schubert says.

“In the last few months, we have been investigating the applicability of selective mining and ore sorting, we have commenced a rigorously scoped Pre-Feasibility Study and we have been heartened that shareholders took the chance to invest in our future journey together.

“Thanks to the strong support of existing and new shareholders during the year, I am pleased to report that not only is your company financially sound, but the PFS is funded.”

The company continues to own 100 per cent of the Razorback project – “an advantage that we will not give away lightly”, Schubert says.

While the company looked at a range of funding options, including a now-defunct ‘farm in’ proposal announced in April from a potential partner BMD,  Things have changed. The stock is now up ~340 per cent since the start of August and that enabled the PFS to be funded with equity.


“While we are not opposed to partners, our vision is to create our own future and take the Razorback project into construction and operation,” Schubert says.

“We believe we will define even more value in 2021.

“We are building an experienced, world class team that will turn our vision into reality.”

A milestone-heavy 2021

The biggest milestone of 2021 will be the release of the PFS on a “realistic, low capital and quick to market” development.

That includes testing ore sorting technology which will improve project economics.

In October, the company signed an agreement with NextOre for the supply of mobile bulk ore sorting equipment that promises to make it simpler to sort low-grade material from the high-grade stuff.

This ore sorting trial will kick off next year.

Additional key milestones include things like speaking with potential offtake partners, mine and processing plant design, metallurgical testing, and permitting.

Global steel production has never been stronger, and this looks set to continue with steel intensive infrastructure and development projects flagged to commence around the world in the coming years, Schubert says.

“It has been enormously satisfying to see the development vision held by the Magnetite Mines team and its shareholders start to be recognised more broadly and begin to be reflected in our share market valuation,” he says.

“We believe we will define even more value in 2021. We are building an experienced, world class team that will turn our vision into reality.

“We believe our project is well positioned to join this growth cycle.”


This article was developed in collaboration with Magnetite Mines, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.