Australia’s Magnum Mining and Exploration Ltd is accelerating the development of its Buena Vista magnetite iron ore project in the US by signing an exclusive Green Hydrogen supply agreement with Nevada based AVF Energy Inc.
AVF Energy will fund and build a commercial-scale green hydrogen plant on the Magnum steel site in Nevada, where hydrogen will be produced from waste for steelmaking. Under the agreement, Magnum will source the green hydrogen at a 10% discount to market rates which will be used to produce green Hot Briquetted Iron (HBI) and High Purity Iron (HPI) products.
Magnum has also signed a non-exclusive sales and marketing contract with M Resources Trading Pty Ltd. M Resources will then sell all Magnetite, HBI, HPI, pig iron and steel produced in the US in return for between 1% and 1.5% of the monthly sales revenue as well as of a Magnum 20 million stock options with a 3-year duration.
Matt Latimore, CEO M Resources, said, “This project responds to the needs of our customers for stable supply of products with a lower carbon footprint and less environmental impact during the production process.”
Dano Chan, the MD of Magnum, said that the agreements with AVF Energy allow Magnum to fast track its mining and green steel development for the local domestic market in the US. It is also well-positioned to take advantage of the Biden administration infrastructure stimulus.
Buena Vista is an advanced magnetite iron ore project and is located in Nevada, US. Magnum announced in October 2020 to buy the mine. All major development permits have already been secured, with the required technical work such as drilling, metallurgy, hydrogeology, plant design, and logistics have already been completed.