Whyalla recently stopped using Haematite and now only magnetite is used. Additionally around 50% of the magnetite mined has been exported. The government is providing huge incentives to replace the existing very old blast furnace, with Electric arc furnaces. They then inject either hydrogen or natural gas into the furnace. When using a blast furnace the chemical equation is Fe3O4 + 2C = 3Fe + 2CO2. If you use pure hydrogen the equation is Fe3O4 ÷4H2 = 3Fe + 4H2O It should also be known that Electric arc furnaces use graphite electrodes. Posco is a very large Korean company already in the Steel and graphite business. Their market cap is AUD $28 Billion and they are very profitable. Once the green iron is made it can be shipped to Korea for further processing. Who ever buys Whyalla will need more Magnetite and Lincoln is the obvious lowest cost source.
LML Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
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