Lincoln Minerals says it could be a key player in SA’s green steel plans

Lincoln Minerals has revealed it owns a one billion tonne-plus magnetite iron ore resource on the Eyre Peninsula, which was previously owned by a China-backed joint venture.

Lincoln Minerals is hoping to develop a major iron ore project on the Eyre Peninsula.

Lincoln Minerals has revealed it is sitting on a 1.2 billion tonne magnetite resource on the Eyre Peninsula which has already had $75m invested into its development during its previous ownership by a joint venture with a Chinese steel company.

The multi-mineral exploration company, which has until now been focused on graphite, said in a release to the ASX on Monday that it held the rights to what was previously Centrex Metals’ project on the Eyre Peninsula near Tumby Bay, which was previously co-owned by Chinese company Wuhan Iron and Steel (WISCO).

The joint venture, which WISCO was a majority owner of, announced plans in 2010 to develop two, five million tonne per year iron ore export operations, however the projects never eventuated, stymied by low commodity prices.

The projects - dubbed the Fusion iron ore project - were costed at $2.5bn at the time, but were rescoped and rescheduled in 2013 due to low iron prices, before being abandoned.

A port development project at Port Spencer near Tumby Bay was also part of the original plans.

The iron ore rights reverted to Lincoln when the joint venture was wound up, and the company said the project now fit well with the South Australian State Government’s green steel aspirations.

Lincoln said it is now starting an expressions of interest process to find a partner to progress its plans, which it said could lead to the development of a 6 million tonne per year concentrate operation within 10 years.

Lincoln also said it had made a submission to the government’s Green Iron and Steel Strategy expression of interest process which closed last week.

“Lincoln’s green iron project is underpinned by our magnetite project, which we understand is the best potential magnetite supply source for the government’s proposed domestic green iron and steel supply chain,’’ Lincoln managing director Jonathon Trewartha said.

“Based upon a review of current data, the project has an aspirational goal of producing 6Mtpa of high-quality magnetite concentrate to supply both a domestic supply chain as well as potential for export tonnes to the global green steel industry.’’

Lincoln said it had assembled a multidisciplinary working group including specialists in areas such as resource geology, metallurgy and infrastructure, as well as financing.

“Most members of this working group have previously undertaken studies or been involved in planning for what is now Lincoln’s Green Iron Project,’’ the company said.

“This intimate knowledge and expertise have enabled a rapid progression of the project’s planning and technical data and has aided in significantly minimising the time to progress Lincoln to its initial discussions with interested parties.’’

The company said the State Government aimed to conduct derisking studies during 2025, following the recent receipt of EOIs, with the eventual goal of facilitating the development of a 2.5 million tonne per year direct reduced iron plant. in the Upper Spencer Gulf region.

“Lincoln is well placed to be a key contributor to this process, which, with the Company’s magnetite ore bodies, it believes is a key feed source for the overall domestic green steel supply chain,’’ the company said.

The project was also well-located in relation to export ports, Lincoln said.

The company also said the prefeasibility study for its Kookaburra graphite project, also on the Eyre Peninsula, should be finished in October.

Lincoln shares were steady on 0.6c on Monday.