Skip to content
Oil Mining Resources


Magnetite Mines Ltd. 5 mins read


8 July 2024




Magnetite Mines Chief Executive Officer, Tim Dobson said:  

“Over the past year, Magnetite Mines has established a strong relationship with JFE Shoji Australia Pty Ltd. who is a part of the Japan’s JFE Group. We are delighted to formalise our collaborative efforts today, the culmination of a comprehensive due diligence effort and the first stage of what we envisage will be a long and prosperous relationship for both parties.”

JFE Shoji Australia Pty. Ltd. Managing Director, Koichi Sawada said:

We are very pleased to secure this agreement to work with Magnetite Mines towards the development of the Razorback Iron Ore Project. Through our due diligence we have gained a good understanding of the Razorback deposit and we see tremendous opportunity in this project that is highly aligned with our strategic priorities, including supporting global efforts to decarbonise steelmaking.”

South Australian Minister for Energy and Mining Tom Koutsantonis said:

“The South Australian Government recently released our Green Iron and Steel Strategy, and today’s announcement by Magnetite Mines aligns with the fundamental objectives of that strategy. South Australia has a key advantage with abundant magnetite resources, which presents the opportunity for the state to be at the vanguard of efforts to meet the world’s increasing demand for green iron.

“I congratulate Magnetite Mines and JFE Shoji Australia Pty Ltd on this significant agreement, which will help facilitate the development of the Razorback Iron Ore Project.”

 Joe Szakacs, South Australian Minister for Trade and Investment said:

“The South Australian Government’s overseas representation plays a critical role in supporting collaboration and partnerships between multi-national companies. I congratulate Magnetite Mines and JFE Shoji Australia Pty Ltd on this agreement which supports the South Australian Government’s green iron supply ambitions.” 


Magnetite Mines Limited (ASX:MGT) is pleased to announce the signing of a non-binding Heads of Agreement (Agreement) with JFE Shoji Australia Pty. Ltd. (JFE), a wholly owned subsidiary of JFE Shoji Corporation. 

The Agreement provides the framework under which the parties will negotiate a binding transaction to support the completion of a Definitive Feasibility Study (DFS) for the 100%-owned Razorback Iron Ore Project (Project). Completion of a DFS is an essential step in reaching a Final Investment Decision (FID) for the development of the Project.

The Agreement represents the culmination of an extensive period of due diligence by JFE that commenced in April 2023 and included site visits to the Razorback site in South Australia with the MGT team. During this period, MGT and JFE have developed a strong relationship formed on a basis of mutual understanding, trust and respect. 

Partnering approach

The Company believes that the Project will be best developed via a joint venture (JV) with motivated investors and offtake partners, and with Magnetite Mines as the Operator of the Project. This format has been used extensively and successfully in large-scale Australian resource projects over recent decades and has the benefit of sharing the capital and risk burden between the JV partners.

Recognising the increasing demand from global steelmakers seeking to secure future “green iron” supply produced from premium-grade magnetite concentrates, Magnetite Mines has prioritised engagement and relationship development with strategic partners over the past 12 to 18 months. 

The Razorback Project is one of only a handful of projects globally that can produce premium-grade magnetite concentrate at scale. Australia and Japan have a long and successful history as trading partners, and it is natural that both countries will continue to work together towards decarbonisation objectives as the world tackles climate change challenges.

Subject to the findings of the DFS, Magnetite Mines and JFE have agreed to discuss in good faith the basis, terms and mechanics by which, JFE may participate in a joint venture (or other investment vehicle) with MGT to realise the development of the Razorback Project.


 About JFE Shoji Corporation

JFE Shoji Corporation is the core trading company of the broader group company JFE Holdings. Centred on steel products, the company handles a broad range of goods, from raw materials for steel to foods and electronics and conducts business globally through a comprehensive supply chain that covers both domestic and international markets. 

Heads of Agreement key commercial terms

The binding transaction contemplated by the Heads of Agreement includes the following proposed elements, subject to the negotiation and execution of a Definitive Agreement:

  1. Funding

JFE will provide funding to MGT for the completion a Definitive Feasibility Study (DFS) and related working capital requirements, commencing immediately upon execution of the Definitive Agreement.

  1. Offtake rights

In exchange for the funding, JFE will earn offtake rights for the delivery of “DR-grade” magnetite concentrate production for up to 10% of planned Project Stage 1 production, i.e. up to 500ktpa, for a 15-year period commencing in year 3 of operations, on commercial terms to be negotiated and included in the Definitive Agreement.

  1. Conversion to participating interest

Subject to agreement between JFE and MGT on the terms of such a conversion, JFE has the right to convert the value of its offtake agreement into a participating interest in the Razorback Project or MGT, at the election of JFE.

  1. Future funding

Subject to the findings of the DFS and the outcomes of the FID, MGT and JFE shall discuss in good faith the basis on which, and the terms and mechanics by which, JFE may participate in a joint venture (or other investment vehicle) with MGT to realise the Razorback Project.


This announcement has been authorised for release to the market by the Board

For further information contact: 

Gemma Brosnan, General Manager - External Affairs

+61 8 8427 0516




Where the Company references previously disclosed exploration results, Mineral Resource and Ore Reserve estimates and ASX announcements made previously, it confirms that the relevant JORC Table 1 disclosures are included with them and that it is not aware of any new information or data that materially affects the information included in those ASX announcements and in the case of Mineral Resources and Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the announcements continue to apply and have not materially changed. 


About us:


Magnetite Mines Ltd is an ASX-listed iron ore company focused on the development of magnetite iron ore resources in the highly prospective Braemar iron region of South Australia. The Company has a 100% owned Mineral Resource of 6 billion tonnes of iron ore and is developing the Razorback Iron Ore Project, located 240km from Adelaide, to meet accelerating market demand for premium iron ore products created by iron & steel sector decarbonisation, with the potential to produce high-value Direct Reduction (DR) grade concentrates. Razorback is set to become a very long-life iron ore project with expansion optionality in a tier 1 jurisdiction that will produce a superior iron ore product sought by steelmakers globally. For more information visit               


Contact details:

For further information contact: 

Gemma Brosnan, General Manager - External Affairs

+61 8 8427 0516

+61 (0) 478 140 736


More from this category

  • Business Company News, Oil Mining Resources
  • 15/07/2024
  • 13:31
Jane Morgan Management

Galan Lithium Limited (ASX:GLN) Announces At-the-Market Raise

Perth, Australia – 15 July 2024 |Galan Lithium Limited (ASX: GLN)is pleased to announce that it has successfully raised $1,100,000 through its At-the-Market Subscription Agreement ("ATM") with Acuity Capital. This funding will be directed towards the further development of its Hombre Muerto West lithium brine project in Argentina and for working capital purposes. Key Highlights: Successful Fundraising: Galan has utilised its ATM with Acuity Capital to raise $1,100,000 by issuing 7,050,000 fully paid ordinary shares at an issue price of $0.156 per share. Strategic Development Funding: The funds will support the ongoing development of the Hombre Muerto West lithium brine…

  • Contains:
  • Business Company News, Oil Mining Resources
  • 15/07/2024
  • 13:20
Jane Morgan Management

American Rare Earths Ltd (ASX:ARR) Commences 2024 Drilling Campaign at Cowboy State Mine Area

Sydney, Australia – 15 July 2024 | American Rare Earths Limited (ASX: ARR | OTCQX: ARRNF | ADR: AMRRY)is pleased to announce the commencement of its 2024 drilling campaign at the Cowboy State Mine ("CSM") area. This strategic initiative aims to upgrade resource estimates and gather critical data for advancing mine planning and prefeasibility analysis. Key Highlights: Drilling Overview: The 2024 drilling campaign includes 23 planned holes—11 core holes and 12 reverse circulation ("RC") holes—totaling approximately 2,670 metres (8,760 feet). The core holes will drill around 1,590 metres (5,217 feet), while the RC holes will cover about 1,080 metres (3,543…

  • Contains:
  • Business Company News, Oil Mining Resources
  • 15/07/2024
  • 13:03
Jane Morgan Management

Arizona Lithium Limited (ASX:AZL) Discovers New Lithium Enriched Formation at Prairie Project

Perth, Australia – 15 July 2024 | Arizona Lithium Limited (ASX: AZL, AZLO, AZLOA | OTC: AZLAF), a company focused on the sustainable development of two large lithium projects in North America, is excited to announce a significant lithium discovery at its Prairie Lithium Project in Saskatchewan, Canada. This discovery is a testament to the Company’s strategic and diligent exploration efforts. Key Highlights: New Lithium Discovery: Lithium-enriched samples of 86 mg/L Li have been identified in the Souris River Formation at Pad #1 at the Prairie project. Souris River Formation: This formation lies directly below the Duperow Formation across the…

  • Contains:

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.