General Industry News, page-81

I see that there are two main assumptions that we have accepted, but if they hold not to be true, would significantly affect Hawsons.

1. Is the assumption that high grade magnetite is really the only way to enable the EAF's to produce green steel &
2. As TF has outlined that the worldwide push to decarbonise is sustained.

Taking the environmental assumption first, there is always 1 or 2 scientists out of 100 who come up with a different theory. What I do see is that people sometimes cling to very small minority and champion a research paper that supports their view. Now it is possible that the 1 or 2 out of 100 could be correct but in my mind I am currently still very comfortable backing the 98 that say we need to decarbonise now and it seems most developed governments around the world agree.

The bigger long term risk to me is the whether high grade magnetite remains the only real option for the EAF's to produce green steel. With so much money being invested into R&D and so much cheap hematite around, what would happen to Hawson's long term future if new technology didn't require high grade magnetite? Not a current issue today but it is on my risk radar for the future.