The Institute for Energy Economics and Financial Analysis (IEEFA) has stated that Australia should maximize investment in magnetite mines to meet carbon emissions targets and manage Scope 3 emissions associated with iron ore mining.
The steel industry’s transition towards using direct reduced iron (DRI) requires a significant supply of high-grade iron ore, but the ores found in the Pilbara region are not suitable for beneficiation to higher grades. The institute stated that the emergence of new magnetite mines could transform the current landscape of the iron ore mining industry.
Some Australian companies such as Fortescue are focused on utilizing magnetite ores to produce high-grade iron ore. In April this year, Australian miner Fortescue commenced production of high-quality magnetite iron ore from the Iron Bridge Magnetite Project with an annual capacity of 22 million mt, as SteelOrbis previously reported. Meanwhile, Australian steel producer BlueScope intends to continue using coal-based technology, claiming that green technology is not yet available.
Magnetite ores represent 38 percent of Australia's resources of iron ore, of which 81 percent are in Western Australia.
