Hi Boodly,MGX sold the right to mine magnetite at Extension Hill...

Hi Boodly,

MGX sold the right to mine magnetite at Extension Hill in 2006 for $52.5 million aud to Asia Iron who sat on it until 2023 when they negotiated the right to mine the magnetite with Terra.

The reason why neither MGX or Asia Iron developed the magnetite mine may have been the substantial set up costs which in 2005 MGX had an estimate of $760 million for the 278 km of slurry line and connected plant and equipment.

MGX recently sold Extension Hill to FEX.

FEX in turn sold Extension Hill to Terra.

In 2024 Terra begun mining of magnetite at Extension Hill, hindered by the restrictions and expense of having a 680 km round trip to truck the ore to Geraldton Port.

For Extension Hill to ever reach the 10 mtpa that Asia Iron had planned for it, a 278 km slurry line would need to be constructed.

In 2005, MGX made application to the government for the creation of a 278 km long x 10 metre wide easement for the construction of a slurry line.

The area of Mullewa is perhaps more favourable for magnetite mining due to
1. considerably closer to port
2. a shared slurry line is already being considered for Mullewa, along with a shared green pellet plant.
3. Green Steel of WA propose a green steel mill at Geraldton.
4. Magnetite of larger crystal size, which reduce processing costs, in the Mullewa area.