Understanding the demand for Green Steel, page-380

Hematite or magnetite?This leaves us with a predicament.Our major iron ore export, hematite, won’t be able to supply green steelmakers using one of the leading technologies. But our much smaller ore type, magnetite, could.If we develop new methods of processing hematite to allow it to be used in green steelmaking, we could keep current mines open and preserve existing markets. But it would mean significant research and development to make possible commercially viable methods.The other option is to accelerate mining of magnetite, because processing this kind of ore is well understood.Some Australian miners are already heading down this path. Fortescue’s Iron Bridge magnetite project in the Pilbara is scheduled to begin production this quarter.Magnetite is also recognised as an opportunity in South Australia, given it makes up 90 per cent of the state’s ore body. The state government has set a target of 50 million tonnes per year by 2030.To ensure expanded mining of magnetite is sustainable, we need strong benchmarks to limit emissions and broader environmental impacts from new mine facilities.That’s because the actual mining of iron ore is an emissions-intensive industry, given it relies on heavy machinery. But our modelling shows there are pathways to progress here too, with electrification and fuel switching.