Despite the recent collapse of iron ore producer and steelmaker Arrium, the SA government today held a workshop into advancing a strategy to secure investment in the state’s magnetite industry.

The meeting started the process of identifying opportunities for growth in the sector.

The government is aiming to secure $10 billion of investment within the next five years to achieve its goal of 50 million tonnes of iron ore exports per annum by 2030.

Arrium’s Middleback Ranges mine produces around 1.6Mtpa of magnetite, but Iron Road has the advanced Central Eyre iron project on the Eyre Peninsula, while Magnetite Mines has recently ramped up activity over its Razorback Ridge project.

Last month, Iron Road signed a strategic cooperation agreement with China Railway and a tripartite agreement with China Railway and Shandong Iron & Steel Group.

Only days later, Magnetite signed a memorandum of understanding for possible offtake and development with steelmaking giant Sinosteel Resources.

SA Minister for Mineral Resources Tom Koutsantonis said the state was blessed with vast magnetite resources and the strategy was aiming at transforming the natural endowment into investment, jobs and exports.

“If we can capitalise on these deposits and increase the amount of iron ore we export there will also be significant opportunities for growth and jobs in the supply chain around this industry,” he said.

“We can’t drag our feet – South Australia needs to plan now so we can capitalise quickly when the inevitable upswing in the commodities cycle happens.”

The initiative follows SA’s copper strategy, in which it aims to treble copper production.
 
“South Australia is already recognised as a world-class exporter of copper and we want to see the state also gain a reputation as a source of high-quality magnetite,” Koutsantonis said.

“This strategy will help grow the mineral resources sector and provide jobs and growth in South Australia’s regional and remote communities.”