- Magnum Mining and Exploration (ASX:MGU) releases a key study for its Saudi Arabian green pig iron plant
- The company intends to use its Nevada-based ore to be turned into green pig iron in the Kingdom of Saudi Arabia
- A biochar plant in Malaysia will boost ESG credentials and give Magnum a global footprint
- Shares last traded at 2.5 cents
Magnum Mining & Exploration (ASX:MGU) has published a key technical study underpinning the viability of a planned plant in Saudi Arabia using Magnum’s Hismelt tech.
That plant is set to produce “green, high purity pig iron (GHPPI)” in the Kingdom of Saudi Arabia.
Teaming up with third-party entity Midmetal, Magnum is set to put its Nevada-sourced high-grade magnetite concentrate through the plant as well as “locally sourced steel mill waste”.
Midmetal – short for Middle East for Metallic Industrial – is a non-binding prospective 50/50 JV partner on an MOU basis.
From these two feedstocks – concentrate and steel mill waste – will GHPPI be wrought, under the current version of the plan put forward by the study.
ESG credentials
Further to the project’s ESG credentials, the company will use “waste palm oil biomass” to create biochar.
This biochar can be used to produce the GHPPI, making the project green. Financial modelling remains incomplete in full but the company expects a base capital requirement of $622.25 million.
A biochar plant in Malaysia could cost up to a further $123 million.
With that said, the study was crafted to ultimately provide a chance to estimate capital and operational expenditure, the company wrote today.
First, a series of other studies will need to be completed including pre-feasibility and feasibility studies, as well as engineering design and permitting procedures.
Funding inroads
Magnum is hopeful by aligning its goals with the Saudi Government’s, it can build momentum towards funding availability.
“Magnum is working closely with Midmetal to establish funding … Midmetal is exploring the utilisation of the latest technologies to produce pig iron in Saudi Arabia as part of the Nusaned Initiative,” Magnum wrote today.
“The Nusaned Initiative prioritises technologies to achieve the ‘Saudi Vision 2030’ of increased localisation of downstream industries and reduce carbon emissions.”
MGU shares last traded at 2.5 cents.