Magnetite Mines, Media Release, 6 August 2024
Australia must act now if it is to seize the opportunity to play a significant role in decarbonising domestic and global steel production and utilise the nation’s significant international comparative advantage to create a competitive Green Iron industry, Magnetite Mines has asserted in the company’s submission to the Australian Government’s Green Metals Consultation Paper.
Magnetite Mines’ submission outlines the stark challenge facing the steel industry currently responsible for producing 8 per cent of the world’s carbon emissions. The task of decarbonising the steel industry’s operations is creating strong new market demand for high-grade iron ore as the industry scrambles to secure a new supply chain for DR-grade iron ore capable of being used for green steelmaking in new Direct Reduced Iron (DRI) facilities and Electric Arc Furnaces (EAFs). The requirement for high-grade ore by 2050 is estimated to be more than five times the current demand.
To respond to this demand, the submission recommends that Australia rapidly develop and then implement a National Green Iron Strategy that puts in place the policies necessary to take advantage of the nation’s abundance of high-quality magnetite iron ore and renewable energy resources to support the production of Green Iron from hydrogen at scale.
The submission articulates an Australian Green Iron Vision that sets a goal for the nation to produce 10Mtpa of export-quality Green Iron by 2035 and building on this foundation to grow significantly in scale beyond that time.
A series of policy options have been identified in the submission to achieve the Australian Green Iron Vision by 2035, central to which is the identification and financial support from Federal and State Governments for key common user infrastructure including transport (port and rail), renewable power and water supply.
Magnetite Mines has also identified the absence of domestic facilities to test and demonstrate the production of Australian Green Iron as a significant barrier to establishing a Green Iron Industry that must be quickly addressed. The company has recommended that government move to quickly fund and build a Green Iron Centre of Excellence, designed to test and prove Australia’s capability to produce export-quality Green Iron from locally sourced magnetite concentrates.
MGT Chief Executive Officer Tim Dobson said:
“The global steel industry has a carbon problem that is creating the demand for Green Iron that Australia’s abundance of magnetite and renewable energy is ideally positioned to help solve. However, we are not the only nation eyeing this opportunity, and Australia must act now to seize the opportunity to produce Green Iron if it is to secure the massive economic, environmental and regional community benefits possible by being a first-mover in this industry.”
