Re: MGX
Magnetite’s untapped potential
By BRENDA LEAHY
MAIN POINTS
There is an increasing level of overseas interest in magnetite ore, which is a viable alternative to hematite/goethite ores.
There are more than 20 identified magnetite deposits and prospects in Australia.
Magnetite concentrate is an important feedstock for pellet production.
Australia's significant magnetite resources could hold the key to further expansion of Australian iron ore production and potentially help supply Asia's current and emerging iron ore and steel markets.
The potential is underlined by OneSteel's recently announced plans for a $250 million project to convert its Whyalla Steelworks in South Australia to produce steel from magnetite.
But despite the robust picture of accelerating sales and increasing demand for iron ore - primarily from China - Australia's magnetite resources, and their international market potential, remain largely untapped, according to Ralph Holmes, Iron Ore Program Manager at CSIRO Minerals.
"Awareness of our magnetite resources and our two current operational pellet plants is low among the main market - the steel industry within China and within Asia generally," Dr Holmes says.
CSIRO Minerals has been investigating magnetite deposits and prospects in Australia for some time. The work has been driven by the increasing level of overseas interest in magnetite ore, as well as indications that demand for hematite/goethite iron ores (the current primary sources in Australia), well outstrips supply.
CSIRO presented a profile of Australia's current and prospective magnetite resources to the Chinese at a recent major industry conference in Dalian as part of the ongoing effort to build awareness of potential opportunities.
Magnetite ore is a well-known, viable alternative to hematite/goethite ores. It can be beneficiated to produce high-grade concentrate suitable for either pellet or sinter production.
"Magnetite concentrate is a very important feedstock for pellet production," explains Dr Holmes.
"It is characterised by high iron grade and lower impurities, the benefit of the exothermic magnetite-to-haematite oxidation reaction and the production of quality pellets at lower firing temperature with less fuel and lower maintenance costs.
"As more pelletising capacity is currently being put into operation, or is under construction in China, there is a strong demand for pellet feedstock.
"However, while it is common knowledge that Australia has abundant hematite and goethite sinter fines and lump ores for the blast furnace, few Chinese steel companies are aware of our magnetite resources."
There are more than 20 identified magnetite deposits and prospects, mostly in Banded Iron Formation (BIF), located across South Australia, Western Australia, Queensland and Tasmania.
These amount to an estimated 4.7 billion tonnes of magnetite resources in Western Australia, 1.6 billion tonnes in South Australia and about 700 million tonnes in Tasmania and Queensland.
Australia has one operational magnetite mine at Savage River in Tasmania (owned by Australian Bulk Minerals), which currently has estimated reserves of 227 million tonnes of magnetite ore.
The Iron Magnet Deposit (about 50 kilometres west of Whyalla in South Australia), soon to be developed by OneSteel, has an estimated reserve of 300 million tonnes of magnetite ore.