Magnum Mining & Exploration explores the potential of a green, high-purity pig iron project in Saudi Arabia, aligning with the nation's push for low-emission steel production. The engineering study reveals a 1.1 million metric tons per annum facility, utilizing magnetite concentrate and local steel mill waste. A memorandum of understanding with Middle East for Metallic Industrial aims for a 50/50 partnership. The project, emphasizing carbon reduction, faces a 24 to 48-month journey through pre-feasibility, feasibility, permitting, and approvals, estimated to cost around $410 million.
Magnum Mining & Exploration, an ASX-listed company, has recently concluded an engineering study, unveiling the potential of a green, high-purity pig iron project in the Kingdom of Saudi Arabia. The study focuses on a 1.1 million metric tons per annum pig iron production facility, aligning with KSA's commitment to low-emission steel production.
The Engineering Study, rooted in the utilization of magnetite concentrate from the proposed Buena Vista Iron Mine and local steel mill waste, aims to estimate the capital and operating costs for the Hlsmelt-based facility. Magnum has entered a Memorandum of Understanding with KSA-based Middle East for Metallic Industrial, seeking a 50/50 partnership in the project. Midmetal will play a crucial role in facilitating access to existing steel mills, managing the facility's establishment, and procuring customers for the Hlsmelt product.
However, the project's progression requires a thorough pre-feasibility study, feasibility study, permitting, and approvals, with an estimated timeline of 24 to 48 months. The study estimates a capital requirement of approximately $410 million (base case), with an additional $82.4 million estimated for the BioChar facility in Malaysia.
The proposed location for the GHPPI production facility is in or near the industrial areas adjacent to the King Fahad Industrial Port in Jubail, KSA. The port, established in 1974, offers essential infrastructure and access to land, power, water, and labor accommodations. While the study assumes that the necessary approvals and permits will be secured, there is no guarantee, and the project's ownership structure is planned to be 50% Magnum and 50% Midmetal.
The Engineering Study, while preliminary, explores the technical and economic viability of the green, high-purity pig iron project, emphasizing a sustainable approach with renewable biochar for iron reduction. The high-grade magnetite concentrate feedstock is planned to be sourced from Magnum's proposed Buena Vista Iron Project.
Magnum Mining & Exploration's foray into the green, high-purity pig iron project in Saudi Arabia marks a significant stride towards sustainable steel production. With a focus on low-emission practices, the proposed 1.1 million metric tones per annum facility leverages local resources, including magnetite concentrate and steel mill waste. The collaboration with Middle East for Metallic Industrial underlines a commitment to shared responsibility and access to existing steel mills. However, the project's journey entails rigorous evaluations, including pre-feasibility, feasibility, and approvals, with an estimated cost of $410 million. The location near the King Fahad Industrial Port provides essential infrastructure, although uncertainties remain regarding approvals and permits. Magnum's vision aligns with KSA's drive for low-emission steel, showcasing the potential for a green and sustainable future in pig iron production.