Posted on 31 Jan 2025
The execution of binding agreements with strategic partner JFE Shoji Australia over the Razorback Project is now planned to occur during the second quarter, says Magnetite Mines Limited.
The JFE agreement finalisation, originally targeted for end-January, has been postponed to accommodate final technical due diligence by JFE at Razorback. Part of this process includes coordinating teams from Japan and Australia to finalise technical due diligence requirements at Razorback in preparation for the definitive feasibility study (DFS) workstreams.
The December quarter saw uncertainty in macroeconomic and geopolitical environments resulting in challenging conditions for fundraising via equity markets, the firm adds, leading it to reduce costs.
During the quarter, JFE also assessed international market appetite for Razorback specification DR-grade concentrates with interest expressed from Indian, Middle Eastern and Chinese iron ore consumers, Magnetite Mines notes.
This interest has resulted in new relationships for the company with regard to potential strategic partnering alongside JFE. These include preferred partners introduced by JFE, as well as international steelmakers, trading houses and private equity groups who have engaged with the company directly in both due diligence and transactional negotiations, the Australian miner adds.
“Due to supply rarity and increasing demand for green iron and steelmaking products, there is an expectation that the pricing of DR-grade magnetite concentrates will disconnect from traditional low and medium-grade iron ore pricing benchmarks over the coming years,” Magnetite Mines says in a report seen by Kallanish.
The South Australian and Federal governments have continued to support the development of a new "green iron" industry in Australia, exploiting Australia's comparative advantages of abundant renewable energy and DR-grade magnetite resources.
The South Australian government’s “Green Iron Opportunity” Expression of Interest (EOI) process received 53 submissions, including from Magnetite Mines’ Green Iron SA consortium. It remains a top priority for the state and is expected to be further developed in early 2025, the miner concludes.
Source:Kallanish
