Magnetite Mines has outlined a revised development pathway for its Razorback Iron Ore Project, about 240 kilometres north-east of Adelaide in South Australia, with new work focused on water supply, early mining areas and rail access.
Announced on 4 September 2026, the scoping work is testing a simpler configuration intended to reduce capital intensity and execution risk before the company advances to a new feasibility phase.
Revised infrastructure and mining plan
The company is assessing the use of saline water with a conventional processing circuit. If confirmed through further metallurgical work, this approach could remove the coastal desalination plant and associated pipeline from the development concept.
The study is also prioritising higher-grade mining areas during the early years of a potential operation. Magnetite Mines said this sequencing is intended to support stronger early production outcomes while the broader resource is developed over time.
A 55-kilometre rail spur connecting Razorback to the existing main line is being evaluated as the preferred transport solution. Engineering work will examine the rail connection and port-related capital requirements.
Resource and funding context
Razorback has a combined mineral resource estimate of approximately 3.8 billion tonnes, including about 2.0 billion tonnes of Probable Ore Reserves as previously reported by the company. Magnetite Mines has emphasised that the current scoping outcome is preliminary and that additional studies, drilling and funding are required before development can proceed.
The next work program includes drilling to convert Inferred resources to Indicated status, saline-water metallurgical testing, and further rail and port engineering. Magnetite Mines is also discussing potential changes to its mining lease application with South Australia's Department of Energy and Mining.
Next phase
The company is considering several funding pathways, including a royalty financing review being undertaken with ProspEx Group, as well as other strategic and financing options. Subject to funding, it aims to provide a further project update after additional resource drilling by the end of 2027.
If the revised configuration advances, the study program may progressively require geology, mine planning, metallurgy, infrastructure engineering and project-development capability. Any construction or operating workforce demand remains dependent on technical work, approvals and financing.
Source: Magnetite Mines Limited, “New Razorback Project Scoping Study and Funding Options”, 4 September 2026.