Major iron ore projects are starting to expand outside of Western Australia, but do they have the potential to shake things up in the sector?
Australia’s iron ore sector has traditionally been dominated by Western Australia, but emerging projects and investments across the country are challenging the status quo.
Developments in South Australia, New South Wales, Tasmania and Queensland are diversifying Australia’s mining portfolio, boosting its competitive edge in the global market and advancing the transition to green iron production.
South Australia
The Razorback iron ore project, located in South Australia’s Braemar iron province, is a significant development managed by Magnetite Mines.
The site, located 240km north-east of Adelaide, is configured to produce five million tonnes of premium-grade magnetite concentrates suitable for green iron production per year.
Its strategic location provides access to existing infrastructure, including railways and ports, ensuring efficient export routes to international markets.
Magnetite Mines is also leading efforts to position SA as a major green iron supplier. Through the Green Iron SA consortium, the company is collaborating with industry partners to harness magnetite resources and renewable energy for low-emission steel production.
The company formally lodged a mining lease proposal (MLP) with the South Australian Department for Energy and Mining (DEM) for Razorback in March.
“We are delighted to have reached this critical milestone for Razorback, setting in motion the development pathway for our flagship project,” Magnetite Mines managing director Tim Dobson said.
“Our team and consulting partners have completed a comprehensive and high-quality MLP submission commensurate with the large-scale, long-life aspects of our future Razorback mine.
“Razorback’s development timing is well positioned to coincide with both the emerging international demand for premium-grade iron ore concentrates and the green iron industry ambitions of state and federal governments, recently underlined by a federal billion-dollar Green Iron Fund announcement.”
Another key SA magnetite project is Lincoln Minerals’ Green Iron initiative, which aims to produce up to three million tonnes (Mt) of high-quality iron ore concentrate annually.
Using hydrogen and the region’s abundant renewable energy, Lincoln Minerals is positioning itself as a leader in green iron production, supporting the decarbonisation of the global steel industry.
Lincoln Minerals applied to the SA Government’s Green Iron and Steel Strategy in September 2024, which concerns SA’s ambition to facilitate a new hydrogen-based green iron plant by 2030.
Categorising the Green Iron project as a “core component” of the Green Iron and Steel Strategy, Lincoln believes the project can help meet the growing demand for green steel, underpinned by a 1.1-billion-tonne magnetite resource consisting of a head grade of 25.7 per cent iron.
Green Iron’s orebodies are open along strike, indicating potential resource upside and low geotechnical risk.
“Lincoln’s Green Iron project is underpinned by our magnetite project, which we understand is the best potential magnetite supply source for the South Australian Government’s proposed domestic green iron and steel supply chain,” Lincoln Minerals chief executive officer Jonathon Trewartha said. “Based upon a review of current data, the project has an aspirational goal of producing six million tonnes per annum 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.”
Another SA player is Iron Road, a company progressing its Central Eyre iron project (CEIP), which boasts a JORC-compliant resource of 4.5 billion tonnes.
CEIP is designed to produce a high-grade 67 per cent iron ore concentrate, positioning it as a premium iron ore supplier.
Iron Road is also developing the Cape Hardy Port, a multi-user, multi-commodity deep-water port to support the project and other regional mining developments.
New South Wales
Led by the Hawsons Iron project near Broken Hill, New South Wales is emerging as an iron ore jurisdiction.
Hawsons Iron believes its mine will supply one of the world’s highest-grade iron ore concentrate products once operational. The company has signed non-binding offtake agreements for more than 60 million tonnes per annum (Mtpa) of concentrate, demonstrating strong global interest.
“Hawsons’ product will demand a price premium despite iron ore spot pricing fluctuations as it satisfies increasing global demand for premium, low-impurity feedstock that enables steel makers to reduce carbon dioxide emissions,” the company said.
“The current list of 18 potential off-takers, predominantly targeting Asia and the Middle East, includes 12 steel mill operators and six commodity trading houses.”
Tasmania
Tasmania’s Savage River iron ore mine, managed by Grange Resources, remains one of Australia’s premier magnetite operations.
In operation since 1967, the mine is known for producing high-quality magnetite concentrate and iron ore pellets used in steelmaking.
Despite challenges such as wall instability at the south end of its centre pit, Savage River delivered strong results in late 2024. The mine produced 683,117 tonnes of concentrate and 598,303 tonnes of pellets during the December quarter.
The operation benefited from higher-than-expected high-grade ore from Centre Pit, boosting its weight recovery rate to 41.1 per cent.
Grange Resources continues to invest in mine optimisation and expansion initiatives to maintain stable production levels and support global iron ore supply.
Queensland
The Sunshine State is making strides in the green iron revolution, with Quinbrook Infrastructure Partners and Central Queensland Metals (CQM) developing a major project in Gladstone.
The Gladstone green iron project will leverage the Eulogie resource, a vanadiferous titanomagnetite ore deposit containing 465Mt of ore, with significant potential for expansion.
The initiative represents a $3.5 billion capital investment and will establish an integrated supply chain from exploration and mining to ore concentration and green iron production.
The project plans to use hydrogen from the Central Queensland hydrogen project (CQ-H2) for green iron conversion, further advancing Australia’s net-zero ambitions.
“Gladstone has all the fundamentals needed for a world-class green iron project with many compelling cost advantages, including what looks to be a world-class ore deposit,” Quinbrook Infrastructure Partners co-founder and managing partner David Scaysbrook said.
“These are the exact fundamentals that hopeful green steel producers need and are scouring the planet for – and we have them right here in Gladstone.”
The development phase will span several years, with planning approvals currently underway and strong global interest from industry partners.
Northern Territory
The Sherwin iron project in the Northern Territory could be revived as a potential supplier of high-grade direct shipping ore, offering a new iron ore export stream from Australia’s north.
The project has estimated resources exceeding 100 million tonnes and has been identified by the NT Government as a strategic mineral project. But it was stalled in 2014 when Sherwin Iron failed to secure a $10 million loan needed to advance the operation.
In 2012, the company submitted a proposal to the Northern Territory Environmental Protection Authority, highlighting the Roper River iron ore project, which includes the Sherwin Creek and Hodgson Downs area as a significant resource with a long-projected mine life.
The Sherwin Creek area is estimated to contain 320Mt of ore at 40.1 per cent iron, while the Hodgson Downs area holds 107Mt at 47 per cent iron.
These deposits consist of large, low-grade hematite-goethite resources, with exploration results suggesting the potential for further extensions.
Australia’s future in iron ore
While the west is set to remain the dominant force in Australia’s iron ore industry, emerging projects in other states are diversifying supply, creating regional economic opportunities and driving investment in green iron production.
With strong demand for high-grade, low-emission iron ore, Australia is well-positioned to support global steel decarbonisation efforts. As these projects progress, they are set to strengthen the country’s status as a critical supplier of premium iron ore, ensuring long-term sustainability in an evolving global market.
This feature appeared in the May 2025 issue of Australian Mining magazine.