Magnetite is ferromagnetic (unlike hematite), it will stick to a...

Magnetite is ferromagnetic (unlike hematite), it will stick to a magnet hence the use of magnetic separation for separating the magnetite from the rock, dirt, crap, etc. Magnetite will not stick to steel unless magnetized.
Moisture content is reduce to the desired moisture content as this is a requirement of grade. Consider a grade of 62% iron will also have a maximum moisture content, particle, size etc, etc. Every element will hold a certain percentage of moisture determined by atmospheric conditions... When the ore hits the furnace the heat will flash off any moisture... The bulk Density of Magnetite is 4.89gm per cc (cubic centimetre) and water has a bulk density of 1 gm per cc. Therefore a ore of 100% magnetite (72% iron ore) with a moisture content of 9% would equal approximately 18.4 kg of water per tonne. Obviously from a steel producers perspective the lower the moisture content the better value they would be receiving.
Also consider that the area MGT plans to mine has an extremely low humidity level which makes drying processed ore very easy. If you were to stockpile the ore in the elements the low humidity levels will absorb the moisture from the ore... (until it rains).....

Hope this helps..