Iron Ore Mines: Australian iron ore mines see investment potential from India

An underdeveloped Australian iron ore miner sees investment opportunities from India and deals to supply high-grade magnetite resources suitable for making green steel as part of the world’s second-largest steel producer’s commitment to climate change, a senior executive at the company said on Tuesday.

The Lake Giles Iron Project in Western Australia, which has 66-69 per cent Fe Fine grade iron ore resources, is looking for investment partnerships as well as supply agreements for its USD 500 million mine development in the process.

The main focus this year has been on formalizing the strategic partnership for the development and infrastructure needed to commercialize the Lake Giles Iron Project, says MacArthur Minerals’ International Sales and Marketing Manager at Singapore International Ferrous Week. .

“The company is in active negotiations with a number of global corporations that have the potential to add capital and technological capabilities to the project,” Moon said, emphasizing the potential for participation in the Indian steel sector.

Moon expects 10 per cent to 20 per cent Indian investment in the 500 500 million Lake Giles development, which is expected to produce three to four million tonnes / year of high-grade ore, of which one to two million tonnes could be supplied. India. Green steel is made using hydrogen instead of coal, and is expected to go a long way in tackling climate change.

Lake Giles is expected to start production of iron ore from 2026.

“We plan to use a lot of renewable energy in our project while India is expected to use hydrogen among other sources of energy to make green steel,” Moon told PTI. Meanwhile, the Razorback project in South Australia, including the provision of 68.5 per cent Fe Fine Magnetite material, is being evaluated by investors for its USD 500 million development. Razorback is at various stages of research, including feasibility and final investment decisions, the production of which is expected to begin in 2025.

“We are in the early stages of financing our project and are looking for strategic partners in Australia’s high-grade magnetite resources,” said Stephen Weir, CEO of Magnetite Mines Limited, which owns the project with two to 4.2 billion tons of assets. Very large magnetite iron ore deposit.

The process of direct reduction of iron (DRI) and the use of energy such as hydrogen could turn magnetite grade ore into green steel, according to Weir, who outlined India’s long-term plans for green steel production.

Traders see the potential for Indian investment in two mega-mines, each at US 50 50-100 million, or 10 per cent to 20 per cent, but with the supply of magnetite ore contracts at competitive prices. India’s highest ore grade is 64 per cent Fe fine, and imports of 66-69 per cent Fe will help create even higher grade eco-friendly steel, traders said at the opening of the conference on Tuesday.

While owners of iron ore assets are not giving much clear indication of the uncertainty created by the Ukraine-Russia war, traders say it would be reasonable to attract investors from North Asia and India, where mills are being upgraded to produce environmentally-friendly products.

Logically, China and India will be big buyers of high-grade iron ore in the long run even though everyone is watching the impact of the Ukraine-Russia war on global prices, traders say.