According to Magnetite Mines' pre-feasibility study, Razorback will consist of 15.5Mt per annum feed plant, with a three-stage magnetic separation and flotation method to generate premium grade magnetite concentrate grading at 67.5%-68.5% iron.
Whyalla Port has extensive materials handling facilities and storage sheds and exports about 9Mtpa of iron ore products.
The company is owned by GFG Alliance.
Facilities at the port include storage sheds capable of blending ores, materials handling infrastructure and a recently refurbished rail tip pocket that can accept bottom-discharge rail wagons.
The port uses transhipment barges to transport bulk iron ore and magnetite concentrates to anchorage facilities offshore, where it is loaded onto large Capesize vessels.
Magnetite Mines chief executive officer Tim Dobson said under the agreement the companies would investigate export services as part of an overall review of export options.
"A key feature of the project is its location in SA, with nearby rail infrastructure and the opportunity to access existing port capacity offering a low-risk, simplified development pathway," he said.
"Both [companies] share aspirations to contribute significantly to the urgent decarbonisation of the steel industry, taking advantage of South Australia's unique attributes with respect to renewable energy, large-scale magnetite resources and supportive stakeholders."
GFG Alliance interim CEO Theuns Victor said the MoU reflected the Port of Whyalla's proven capability to handle the bulk-commodity requirements of the state's magnetite and broader mining industries.
"In the past two years we have invested in an additional harbour crane to double the port's handling capacity and refurbished our rail tip pocket, which is a critical piece of infrastructure in the export of iron ore," he said.
"This investment is part of an ongoing focus to increase third-party cargo handled through the port and establish the site as a key hub to support our own, and the broader economy's, growth in the region."
