According to a joint media release from Peter Malinauskas, premier of South Australia, and Tim Ayres, minister for industry and innovation and minister for science of Australia, early works have commenced on stage one of the magnetite expansion project (MEP1) in the Middleback Ranges, aimed at securing long-term iron ore supply for the Whyalla steelworks in South Australia. Geotechnical drilling has begun at Iron Duke, approximately 56 km from Whyalla, as part of planned construction activities to expand magnetite mining capacity.
The project is designed to secure the supply of magnetite required by the Whyalla steelworks and support future ambitions to transition to green iron and low-emissions steel production. Once completed, MEP1 is expected to enable annual production of up to 2.5 million mt of magnetite and extend mine life by more than 20 years, supporting over 300 jobs.
$20 million joint government support
The project is backed by a $20 million loan, jointly funded by the Australian and South Australian governments, as part of a broader $275 million funding package announced last year.
It follows the governments’ $2.4 billion Sovereign Steel Package, introduced after the steelworks’ owner, GFG Alliance, was placed into administration one year ago.
Sale process advances
The sale of the Whyalla steelworks has entered the final binding bid stage, with five domestic and international industrial groups shortlisted after interest from more than 70 parties.
Officials state that the magnetite expansion strengthens the long-term viability of the steelworks and supports ongoing industrial transformation in the region.
