Lincoln Minerals (ASX: LML) is positioning itself to grab a seat at the green steel transition table after lodging ambitious plans to develop its massive 1.1 billion-tonne Green Iron magnetite project on South Australia’s Eyre Peninsula.
The strategic move is part of the company’s plan to secure pole position in the race to supply ore in line with the SA Government’s 2030 low carbon vision. The project is considered by management as an ideal candidate and the best undeveloped source of magnetite to feed SA’s Green Iron and Steel strategy being heavily promoted by the State Premier, Peter Malinauskas, and his Government.
With expressions of interest due by tomorrow, all submissions will then be reviewed before a follow-up call to respondents early next year.
Apart from its obvious size, the Green Iron project benefits from being equidistant not only to the deep-water ports of Port Lincoln and the proposed Cape Hardy shipping terminal, but it is also close to newly-expanded power transmission lines and desalinated water supply on the eastern peninsula. Crucially, it is also within striking distance of the expected site of a proposed 2.5 million-tonne per annum direct reduction iron (DRI) plant at Whyalla that, again, is being promoted at State level.
The deposit itself, at 1.1 billion tonnes and still open along strike in all directions, is one of the biggest of its kind in SA. Unusually for the region, it runs with a head grade of 25.8 per cent, which when treated produces a remarkable grade of 66.9 per cent as a concentrate.
Further tests have concluded that, if the size of grind when beneficiating the ore was reduced by 40 per cent to 45 microns, then a DRI concentrate of more than 69 per cent can be produced without floatation, offering significant cost flexibility with clear impurity trade-off potential.
Discussions are now underway with potential partners as the company aims to leverage the growing demand for carbon-neutral materials in the steel industry – a sector which is estimated to produce nearly 9 per cent of global carbon emissions and is under increasing pressure to reduce its environmental footprint.
“Lincoln’s Green Iron Project is underpinned by our magnetite project, which we understand is the best potential magnetite supply source for the South Australian Government’s proposed domestic Green Iron and Steel supply chain. Based upon a review of current data, the project has an aspirational goal of producing 6Mtpa of high-quality magnetite concentrate to supply both a domestic supply chain as well as potential for export tonnes to the global green steel industry.” Lincoln Minerals CEO Jonathon Trewartha
The history behind Lincoln’s involvement in its Green Iron project stems back to 2108 when it inherited the deposit after the wind-up of a steel mill joint venture (JV) between Centrex and Chinese steel giants Baotou Iron & Steel and Wuhan Iron & Steel, who all pulled out because of an iron ore price decline.
Now, with almost $100 million spent on the project – $75 million of that by the now-former Chinese owners – Lincoln has greatly benefited from the previous studies and has built on them to help complete its comprehensive submission to government. The next phase of the process, according to Trewartha, is to engage with regional steel industry participants in a bid to sign up a partner to help develop the project.
SA is rapidly gaining recognition for its green energy potential, fuelled by abundant renewable resources and significant investments in hydrogen production.
The SA Government has a clear vision to position the State as a global leader in decarbonised steelmaking. Central to its strategy is the proposed 2.5 million-tonne per annum green steel plant, which has the potential to contribute up to $3 billion annually to the local economy.
Trewartha believes Lincoln’s proposal dovetails neatly with those goals, offering a solution that is not only locally sourced, but also environmentally sound, positioning it as a frontrunner in the green iron race.
It has been a busy time for the company recently, not only in finalising the magnetite submission, but also working around the clock to deliver a prefeasibility study (PFS) in the next month on its big graphite project just down the road. Targeting a phased approach to initially mine 20,000 tonnes per annum from a 2 million-tonne high-grade core zone at surface at its Kookaburra project (KGP), the company hopes to become the first company to reboot graphite production in Australia.
Backed by extensive geological studies and a dedicated team of experts, Green Iron appears to be standing on solid ground. With its robust resource base, proximity to key infrastructure and strong SA Government backing, Lincoln’s project is on track to potentially play a pivotal role in the State’s – and the world’s – green steel future.
And with a PFS due on the KGP, there is likely to be no shortage of news for punters to muse on.
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