A $2.3 BILLION plan for a magnetite mine linked to the Port of Albany by a 110km slurry pipeline has been cancelled.
A spokesperson for Southern Ports, which operates the Port of Albany said Southern Ports had been working with Tasmanian iron ore pellet producer Grange Resources as it considered various options to export magnetite.
The process had been ongoing since 2004.
“Over this period, in line with our responsibility to facilitate trade, Southern Ports has worked to assess the viability of the project in its different forms,” the spokesperson said.
“As part of this work, two separate but related proposals were referred to the EPA in early 2023 in relation to the project.”
The first was Grange Resources’ proposal regarding construction and operation of ore handling, storage and ship loading facilities.
The second was Southern Ports’ proposal in response to accommodate the proposed transhipping activities associated with the project.
Southern Ports’ activity concerning the project was placed on hold in 2024 while Grange Resources sought investment partners, and on 14 April 2025 Grange Resources announced it had withdrawn its EPA proposal.
“With the Southern Ports’ proposal relevant only in the context of the Grange Resources proposal progressing, we requested withdrawal of our proposal earlier this month. The EPA confirmed this withdrawal yesterday [29 April 2025].
“Southern Ports remain committed to re-engaging with Grange Resources or any other prospective trade partner to understand and assess any future proposals for trade through the Port of Albany.”
The statement from Grange Resources announcing the withdrawal of the proposal for an open pit operation at the Southdown Magnetite Project said it would be resubmitted once the project description had been finalised in conjunction with any third-party investment partner.
Grange CEO Weidong Wang said Southdown is a world-class magnetite deposit that is becoming increasingly relevant as steel producers seek to decarbonise their supply chain resulting in growing demand for Direct Reduction (DR) grade iron ore products.
“At 70% iron content with low impurities (nominally Al2O3+SiO2~2.3%), Southdown’s concentrate product will be highly valued to meet this demand.
“The board remains positive about the future development of Southdown and is pursuing opportunities with investors who intend to act as JV partners for jointly developing Southdown.
“I look forward to the delivery of the Southdown product to meet the emerging demand for DR quality iron ore, supporting the production of low carbon emission steel.”