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Magnetite Mines to solidify Razorback energy supply

Magnetite

Magnetite Mines hopes to enhance the energy capacity of its Razorback iron ore project in South Australia after applying for a 132,000-volt transmission line to be built from Robertstown to the operation.

Carrying a load of approximately 40 megawatts, if constructed, the transmission line would have the capacity to power Magnetite’s proposed mining operation and accompanying 2.5-3 million-tonne-per-annum (Mtpa) processing plant.

The transmission line would enable Magnetite to be able to connect to the National Electricity Market (NEM), with which it could access reliable energy supply, competitive electricity pricing and obtain the benefits of high renewable content.

Magnetite has submitted a connection enquiry form to ElectraNet, which will allow the electricity transmission company to prepare an estimated scope and fee proposal for the work. The application will be assessed in accordance with the National Electricity Rules (NER).

The connection enquiry marks an important step in the progression of the Razorback project as it commences the formal process under the NER to connect Razorback to the grid, while initiating the necessary energy preparations.

If the transmission line was connected today, Magnetite would benefit from an estimated 70 per cent renewable power supply.

With Australia’s renewables intensity set to further increase, the Razorback project could be powered by a South Australian grid close to 100 per cent renewable capacity by the time the mine commences production.

“We take our ESG credentials very seriously and this is another key example of the Razorback iron ore project’s infrastructure and location attracting cost and emission savings,” Magnetite executive chairman and chief executive officer Peter Schubert said.

“Energy represents a significant component of our operating costs and being able to obtain low-cost energy with a high renewables content will provide us with a tangible competitive advantage in a decarbonising world.”

The Razorback project has 4.2 billion tonnes of inferred to indicated iron ore resources and contains three main ore bodies, including the Razorback Ridge, Iron Peak and Ironback Hill deposits.

With Razorback’s pre-feasibility study released in July 2021, Magnetite has commissioned a definitive feasibility study for the project.

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