New iron project to be launched in Western Australia

Under the agreement, a joint venture to be named Mid-West Green Iron will be established to plan and manage the project, with the aim to produce commercial quantities of direct reduced iron (DRI), the announcement said.

Athena Resources argued that the mid-west region offers key advantages for 'green' iron production, including access to renewable energy sources (wind and solar) for hydrogen generation, as well as large undeveloped magnetite deposits suitable for high-grade iron ore concentrate - both essential for sustainable DRI manufacturing.

The company's Byro Magnetite Project, also located in Western Australia, is expected to provide the feedstock for the initiative, the announcement said. The project holds an estimated 29.3 million tonnes of magnetite at an average grade of 24.7% Fe, with the potential to produce 21 million tonnes of 70.7% Fe-grade concentrate. 

For the DRI production process, Warradarge Energy, a private Western Australian renewable energy developer, will supply the hydrogen, while Fenix, a mining, logistics, and port services provider, will handle regional transportation and infrastructure needs.

The new project is scheduled in three phases, Athena Resources noted. The validation of the 'green' iron production paths under the cooperation of the three companies is expected to be completed by the end of 2026, after which a small-scale demonstration plant will be built. Once the iron production is proved successful, a full-scale plant will be built for commercial production, the announcement said.

Written by Irene Zhuang, zhuangailing@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com