Nanocap Tempest Minerals (ASX:TEM) has inked an MOU with Western Australian-based Green Steel and Iron Pty (GreenSteel) with a view towards the latter’s construction of an iron processing hub nearby Tempest’s Yalgoo Project.
That project is prospective for, well, everything – copper, gold, base metals, and other precious metals. Worth considering is Tempest is capped at just over $3 million. The company points towards greenstone geology on its webpage.
But there’s one aspect of Yalgoo that has caught GreenSteel’s attention – the ‘Remorse’ deposit, which is magnetite. What GreenSteel wants is a magnetite concentrate for its ‘green’ steelmaking.
“This MOU with Tempest Minerals marks a significant step towards realising our vision of processing WA’s vast reserves of iron ore and moving further towards steel making by producing hot briquetted iron suitable for electric arc furnace steel-making facilities globally,” GreenSteel’s Don Johnston said.
“By leveraging WA’s abundant renewable energy resources and Tempest’s promising iron ore assets, we’re positioning ourselves at the forefront of the global transition.”
GreenSteel intends to build an electric arc furnace in Collie. Given the sheer volumes of power those assets use, it’s unclear if Collie’s sole renewable energy asset – a big battery (it has its own website) – would be enough to power that up.
At any rate, for Tempest, it’s probably good news. The company is clearly in need of an upside catalyst.
“This MOU with GreenSteel marks an important step in advancing our Remorse magnetite deposit,” TEM MD Don Smith said.
“By partnering with a leader in green iron steel technologies, as well as a proven developer in the field we aim to position Remorse as a near future supplier of high-grade iron ore for the rapidly evolving low-carbon steel industry.”
TEM last traded at 0.6cps.
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