Razorback: SA’s multibillion-tonne iron ore project gets Feds backing
A South Australian iron ore project, years in the making, has won Major Project Status, recognising its significance to the nation.
A prospective iron ore mining project in the state’s northeast that contains some 3.8 billion tonnes of magnetite has been elevated to ‘Major Project Status’ by the Australian Government, thrusting it onto an approvals fast track.
The title recognises its scale and national significance, reflecting the Razorback Iron Ore Project’s potential economic contribution to the Australian economy, estimated at $1.15 billion annually once in production.
It qualifies Magnetite Mines for additional support and facilitation from the Australian Government for a three-year period as feasibility studies and approvals programs are advanced.
The Razorback project is the only iron ore project across the nation on the MPS list.
“We are proud to receive the Australian Government’s recognition of the national significance of our Razorback Iron Ore Project,” Magnetite Mines managing director Tim Dobson said.
“With a 3.8 billion tonne resource capable of supporting multi-decade production, Razorback is set to deliver substantial economic and social benefits to South Australia’s Mid-North and Upper Spencer Gulf regions.”
Given the scale of the project, the pathway to production has regulatory complexity that includes environmental, native title and potential foreign investment approvals, Dobson said.
Receiving MPS status means Federal Government support for the listed company “to help navigate these processes efficiently and in a timely manner, creating further value and reducing investment risk as we advance this transformational magnetite development”.
Razorback is an undeveloped resource that Magnetite Mines has owned since 2009.
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It comes as Premier Peter Malinauskas, SA Treasurer Tom Koutsantonis and Federal Industry and Innovation Minister Tim Ayres were in the Upper Spencer Gulf on Tuesday to announce a magnetite mine expansion.
The political leaders announced the Whyalla Steelworks-associated magnetite mine would produce 2.5 million tonnes of magnetite per year at its Middleback Ranges site, with early works costing $20 million in joint state and federal funding.
Magnetite is critical to the transition to green iron and steel, and South Australia has one of the largest magnetite resources in the world, Energy and Mining Minister Tom Koutsantonis said.
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