Hi All,
I have posted much information on the benefits of high grade Magnetite ore versus Hematite ore, information well worth the read.
That said, I would suggest all peeps invested in MGT understand the steel manufacturing process and the differences between the common "Blast furnace" and the newer (Greener) "Arc furnace". This will answer the questions on why there is such a premium paid for high grade magnetite ore over and above 62% hematite ore. Research coking coke and how it is used as a fluxing agent in a blast furnace and the fluxing agents used in arc furnaces.. I not going to do your research for you but I will try to point you in the right direction...
The world needs steel, more and more each year and this is not going to change.
The process in producing steel is changing, changing for the better and high grade iron ore is required for this change. FMG's, BHP's and RIO's average sell price is dropping further below the stated 62% market price every year, eating into their profits.
Mark my words, "EVERY MINER IS SEEKING HIGHER GRADE ORE". The future of steel manufacturing is Arc Furnaces, the future of iron ore is "High Grade Ore".
Consider this, It is only a matter of time before iron ore grades below 58% will be unsellable! (cost of mining vs sell price). What effect will this have on so many low grade Hematite mines?
Their only option will be to try "Beniforcation processes" to increase the grade of their Hematite ore.
Who is currently doing this successfully?
What process works?
What is the extra cost? (I would love some feedback).
Not sure how many of you have visited remote iron ore mines, so many "marginal" mines are "Off Grid" (electrical power) and rely on their own power generation. This is a huge cost for so many iron ore mines. MGT will not have this issue. Solar power is not a suitable solution for remote mines as ore processing plants run 24/7. ... (consider how quickly power is increasing in cost and the effect marginal mines that are on grid).
High grade Magnetite Iron Ore has been the dream for many years but has not been able to compete with cheaper high grade Hematite ore, times have changed, easy accessible high grade hematite is all but gone, green steel, carbon credits, coking coal pricing and power costs have all changed, moving the goal posts. The increase in price paid for ore above 62% grade continues to grow, now is the time for high grade ores...
High Grade Iron Ore is the future and MGT has shitloads of it!......
My thoughts only, DYOR.
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