Magnetite’s Razorback to benefit from SA grid’s renewables
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Magnetite Mines (ASX:MGT) is progressing development of its Razorback Iron Ore Project with a formal application submitted for a grid electricity link.
The company has submitted a formal application to ElectraNet for a proposed 132 kilovolt (kV) transmission line to be built from Robertstown to the project site in South Australia’s Braemar.
The line will carry a load of about 40 megawatts to support the proposed 2.5Mtpa to 3Mtpa Stage 1 plant and mining operation and allows the project to connect to the National Electricity Market.
Magnetite Mines is aiming to leverage the connection to the grid and benefit from competitively priced, reliable grid electricity with a high renewable content. The company added that while about 70% renewable power is available now, the renewables intensity of the South Australian grid is forecast to be close to 100% when the project starts production.
“We take our ESG credentials very seriously and this is another key example of the Razorback Iron Ore Project’s infrastructure and location attracting cost and emission savings” Magnetite Mines’ Executive Chairman Peter Schubert said.
Razorback remains on track for a decision to mine in late 2022 with first iron ore exports targeted for late 2024 or early 2025.
“This application represents achievement of a major milestone on Razorback’s development pathway” said Magnetite Mines’ Chief Development Officer Stephen Weir.
“The project is at a stage where it can formally apply to connect its planned load to the National Energy Market. This confirms our intent to the market regulator and allows us to access very competitively priced power under long term contracts with renewable content of ~70% forecast to increase to ~95% around the time we are in production.”
Magnetite is currently progressing its accelerated development pathway for the flagship Razorback Iron Ore Project with a Definitive Feasibility Study well underway. Assessment of the optimised approaches include reviewing an optimised concentrator with the use of selective mining and/or ore sorting to improve head grades.
This will pave the way for the project to produce a 68% high grade iron ore concentrate, which is expected to command a premium over regular iron ore as steelmakers shift towards a higher grade product to lower their emissions.
Razorback has a giant 4.2 billion tonne resource with just 473Mt included in the PFS, meaning there is significant potential for long-term mining.
Other factors that account for its operating costs include the ore that can be mined from surface and a giant 4.2 billion tonne resource – with a further 1.5Bt at the nearby Muster Dam tenements.
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.