While Mineral Resources (MinRes) recently delivered its final trainload of iron ore from its Yilgarn operations in Western Australia, another major is looking to open a new magnetite mine in the same district.
MinRes announced in June 2024 that it would cease Yilgarn iron ore shipments by December 31, meaning hundreds of employees would need to be redeployed.
It signalled the closure of a major iron ore operation in the storied Yilgarn district, which has been a source of iron ore since the 1950s.
MinRes attributed the closure to a combination of factors, including limited remaining mine life and the significant capital costs to maintain the operation.
When one door closes, another opens, which is the case with Gina Rinehart and her investment in the Mt Bevan magnetite project in the Yilgarn region.
Rinehart’s company Hancock Magnetite is advancing Mt Bevan in partnership with Legacy Iron, with Hawthorn Resources recently converting its 19.6 per cent interest in the project to a one per cent royalty.
A pre-feasibility study (PFS) exploring Mt Bevan’s development was completed in July 2024, with more than $5 billion of capital expenditure set to be invested in the magnetite project.
According to the PFS, Mt Bevan, which boasts a mineral resource estimate of 1.29 billion tonnes, has the potential to achieve a direct reduction iron (DRI) product grade of more than 70 per cent iron (Fe).
The joint venture partners are currently advancing a $20 million forward works program to further define, optimise and de-risk Mt Bevan.
Upon completion of the PFS, Hawthorn managing director and chief executive officer Brian Thornton highlighted Mt Bevan’s high grade.
“At a beneficiated DRI product grade of 70 per cent Fe, Mt Bevan magnetite will be a key ingredient for DRI in future steelmaking and result in a ‘cleaner greener steel’ assisting in our universal goal of net zero economic development,” he said.
Macarthur Minerals could also help in reigniting the Yilgarn region as it advances various projects across the district, including its Ularring and Treppo Grande hematite projects and its Moonshine magnetite project.
Macarthur recently granted Gold Valley the right to mine hematite ore from Ularring, which Gold Valley will combine with ore from its Wiluna West iron ore project to create an improved product.
While MinRes might’ve said goodbye to the Yilgarn iron ore district, several other investments indicate there is life in the region yet.
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