South Australia to spearhead green iron revolution

Green Iron SA — a consortium comprised of Magnetite Mines (ASX: MGT), Aurizon Holdings (ASX: AZJ), Flinders Port Holdings and GHD — has been launched to kick-start green iron production and export capability in South Australia.

By harnessing the vast untapped potential of the Braemar iron region, Green Iron SA aims to position the state as a global leader in the low-carbon steel supply chain.

Magnetite Mines managing director Tim Dobson says the time has arrived for South Australia to take advantage of its massive magnetite endowment.

“With 6bt of magnetite resources ready to mine, Magnetite Mines is excited to take this important step toward building a world-class green iron industry in South Australia,” he said.

Aurizon Holdings head of customers and growth David Steele says opening up the Braemar requires an integrated logistics solution that can move vast quantities of iron ore efficiently and sustainably.

“Aurizon is supporting the development of a project critical to addressing the challenge facing the steel sector’s carbon emissions by providing the rail and freight infrastructure that will make South Australia’s green iron industry globally competitive,” he said.

Green Iron SA is proposing a phased development pathway, enabling the necessary foundations to be put in place to ensure the creation of a green iron industry in the state is sustainable.

The consortium’s project starts with fast-tracking the development of the Razorback iron ore project, thereby creating a secure supply of high-purity magnetite, a feedstock critical to the production of green iron.

The project then progresses to the production of direct reduction (DR) grade pellets and ultimately manufacturing and exporting direct reduced iron (DRI) in the form of Hot Briquetted Iron (HBI) from the established industrial city of Port Pirie by the early 2030s.

“The Razorback iron ore project will play a pivotal role in supplying the high-grade feedstock necessary for green iron production, which is set to become a key export commodity, supporting our balance of trade as Australia transitions away from fossil fuel exports,” said Mr Dobson.

“This project not only aligns with global decarbonisation goals but also positions South Australia as a leader in sustainable mining and green iron production.”

Flinders Port Holdings (FPH) chief executive Stewart Lammin says the Port Pirie precinct offers a unique opportunity to develop a state-of-the-art export hub.

“By leveraging existing infrastructure, we can fast-track the transition to a green iron industry and contribute to the economic prosperity of the region,” he said.

“FPH is ready to facilitate the export of green iron products to global markets, showcasing South Australia’s leadership in sustainable development.”

By using natural gas and green hydrogen when available, Green Iron SA is seeking to address the urgent need to make significant reductions in carbon emissions in global steel production, and in doing so deliver substantial economic benefits to the Upper Spencer Gulf region, including long-term job creation and community revitalisation.

GHD resources and energy executive leader Mike Nolan says GHD is delighted to bring its engineering and sustainability expertise to the Green Iron SA consortium.

“The use of green hydrogen and renewable energy for steel production has enormous potential in terms of reducing carbon emissions, and we’re excited by the prospect of establishing new standards for the global iron and steel industry,” he said.

To realise its vision, Green Iron SA calls for government collaboration to remove key infrastructure barriers — particularly in water, power and logistics — to unlock the full potential of the Braemar iron region.

Green Iron SA has commenced discussions with the South Australian and Federal Governments to secure the necessary partnerships and infrastructure required to enable its role in establishing an Australian green iron industry at pace.