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cultural significance for the Ngoonooru Wadjarri.
These challenges were just the warm-up act for the main
event – transforming Crosslands from a small DSO miner to
a globally-significant producer of high quality magnetite and
hematite-based concentrate products. The first stage of the
Jack Hills Expansion Project (JHEP) will involve the production
of more than 20 million tonnes per annum (Mtpa) of magnetite
concentrate with further expansion options currently
being considered.
While magnetite remains a relatively new industry in
Australia, historically it has accounted for more than 50% of the
world’s steel production. North American, Russian, Ukrainian
and Chinese producers have been using high grade magnetite
concentrates to make pellets and sinter for decades because,
unlike Australia, they have not had the luxury of utilising
high grade lump or fines iron ore from the outset.
With less lump ore available from existing miners, North
Asian steel mills are being forced to buy more fines for sintering
or pelletising. But the decreasing grades of available fines from
the Pilbara in particular, means steel producers are facing higher
costs in the form of energy, waste disposal and a reduced ability
to recycle scrap – all in a time of growing economic pressure.
Steel mills are also facing pressure to cut greenhouse
gas emissions (and not just hold them at current levels).
North Asian steel mills are increasingly caught in this pincer
between decreasing ore grades and increasing environmental
pressure, which is why they are actively searching for
new sources of high grade products.
Crosslands’ magnetite concentrate is very high grade ore.
Apart from having the energy benefits for customers of being
magnetite and having extremely high iron, the concentrate is
expected to have the lowest levels of alumina of any ore in the
market, and also one of the lowest levels of phosphorous.
If Crosslands’ ambitious expansion project goes to plan,
its concentrates will find their way to customers via the new
integrated port and rail project proposed for the mid-west by
Oakajee Port and Rail (OPR). And while there are a few hurdles
to clear before that happens, Crosslands’ performance so far
suggests it is only a matter of time before it realises its vision
of becoming the region’s leading iron ore producer.
Crosslands’ Jack Hills mine at the
completion of Stage 1 operations