Early works have begun on a magnetite expansion project in South Australia’s Middleback Ranges, aimed at securing long-term feedstock supply for the Whyalla Steelworks and supporting a transition to lower-emissions steelmaking.

Stage one of the Magnetite Expansion Project (MEP1) will underpin supply of magnetite from Iron Duke, located about 56km from Whyalla. Geotechnical drilling for planned construction activities is now underway as the project moves into its early development phase.

Once delivered, MEP1 is expected to facilitate magnetite production of up to 2.5 million tonnes per year, providing long-term supply certainty for the Whyalla Steelworks. The project is forecast to extend mine life by more than 20 years and support continuity for more than 300 jobs in the region.

The expansion is supported by a $20 million loan jointly funded by the Australian and South Australian governments. The loan forms part of a broader $275 million funding package announced in July 2025, with costs shared equally between both governments.

Federal Industry and Innovation Minister Tim Ayres said the loan was helping to drive early works on a project designed to secure the future of steelmaking in Whyalla.

“With a world-class magnetite resource and an estimated 21-year mine life, this project underpins more than 300 jobs and supports the move to low-emissions iron and steelmaking in South Australia,” Ayres said.

South Australian Energy and Mining Minister Tom Koutsantonis said magnetite would play a critical role in the region’s industrial future.

“Magnetite is a critical input for lower-emissions steel and green iron and South Australia holds some of the world’s largest magnetite resources,” Koutsantonis said.

The project progresses as the sale process for the Whyalla Steelworks enters its final stage. Five domestic and international industrial groups have been shortlisted to submit binding bids following interest from more than 70 parties worldwide.

More than 10 international delegations from countries including Japan, Korea, India, Vietnam and across Europe have conducted site visits as part of the due diligence process. Binding bids are expected within months.

The sale follows the South Australian Government’s decision to place the steelworks’ owner, GFG Alliance, into administration in early 2025. Since then, the Australian and South Australian Governments have jointly funded a $2.4 billion support package, including assistance for local suppliers.

According to the State Government, operations at the steelworks have since recorded their strongest open pour billet casting performance since commissioning in 1999, as magnetite feed increasingly underpins production.

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