The Iron Revolution: How Premium Magnetite is Powering the Green Steel Transition

The global steel industry stands at a crossroads. Traditional steelmaking must transform to meet net-zero targets, creating an extraordinary opportunity for high-grade magnetite producers like Athena Resources at the centre of a fundamental industrial shift.

The Decarbonisation Imperative

Traditional blast furnace steelmaking produces approximately 2 tonnes of CO₂ for every tonne of steel manufactured.1 The solution gaining momentum worldwide is Direct Reduced Iron (DRI) technology combined with Electric Arc Furnaces (EAF), which can reduce emissions to as low as 0.46-0.6 tonnes of CO₂ per tonne of steel produced with green hydrogen.2, 3

According to the Institute for Energy Economics and Financial Analysis (IEEFA) research based on BloombergNEF’s net-zero outlook, 64% of total primary steel production in 2050 is projected to use hydrogen-based DRI-EAF technology.4 This represents one of the most significant industrial transformations of our time, creating unprecedented demand for a particular type of iron ore.

Why Premium Magnetite Matters

DRI technology requires ultra-high-grade iron ore that most deposits cannot provide.

According to Midrex Technologies, a leading DRI technology provider, DR-grade iron ore must meet stringent specifications:5

  • Iron (Fe) content: minimum 66%, ideally > 67%
  • Acid gangue (SiO₂ + Al₂O₃) content: ≤ 3.5%, ideally maximum 2%
  • Phosphorus (as P₂O₅): ideally ≤ 0.015% but maximum up to 0.08%

These specifications are essential for the chemistry and efficiency of direct reduction processes. DR-grade iron ore ideally has an iron content of 67% or more, and such deposits are scarce. Only a small percentage of global seaborne iron ore meets these requirements.6

According to Wood Mackenzie data, while 213 million tonnes per annum of new capacity with 67%+ Fe has been planned for this decade, only 41 million tonnes is considered “probable” or “highly probable.”7

The Magnetite Advantage

Magnetite iron ore is inherently better suited to producing DR-grade concentrate and pellets than hematite deposits. Through magnetic separation and beneficiation, magnetite can achieve the ultra-high purity levels that DRI technology demands, with liberation degrees exceeding 90% and concentrate grades of 67% Fe or higher.8

At Athena’s Byro Magnetite Project in Western Australia, metallurgical testwork has demonstrated the ability to produce concentrate assaying 70.61% Fe, well above DR-grade requirements. This was achieved through Wet Low Intensity Magnetic Separation followed by flotation on samples from the Byro South Prospect.9

The Australian Opportunity

Western Australia is uniquely positioned to capitalise on this transition. The state government’s Green Steel report identified five pathways for WA iron ore to reduce global steel emissions, with several involving local processing of magnetite into premium products like Hot Briquetted Iron (HBI).10

The report highlighted compelling economics: a 4.8 million tonne-per-annum magnetite HBI plant in the Pilbara could add $31.7 billion to the WA economy over 2050 and create 1,700 jobs.11 Premier Roger Cook and Mines Minister Bill Johnston have both emphasised the state’s commitment to attracting low-emission steel investments and moving up the value chain.

This represents a fundamental shift from being simply the world’s largest iron ore exporter to becoming a supplier of premium “green iron” feedstock for the decarbonised steel industry.

Beyond Traditional Steelmaking

Premium magnetite applications extend well beyond steel production:

Battery technology: Iron-based battery chemistries are emerging as cost-effective alternatives. Research shows that iron can significantly reduce production costs and environmental impact compared to cobalt- or nickel-based cathodes.12 Additionally, vanadium from magnetite ores supplies vanadium redox flow batteries (VRFBs), with the WA government recently pledging support for a 50 MW/500 MWh vanadium flow battery project.13

Industrial processing: Dense media separation requires magnetite with very high purity (approximately 99% Fe₃O₄) and low water absorption, which can be recycled indefinitely thanks to its magnetic properties.14

Medical applications: Ultra-pure iron oxide nanoparticles are being developed as next-generation MRI contrast agents. MIT researchers have developed new iron oxide nanoparticles that could help avoid rare side effects caused by current contrast agents.15

Market Growth and Strategic Timing

The DRI market is experiencing substantial growth. The global direct reduced iron market size was estimated at USD $47.76 billion in 2024 and is projected to reach USD $68.98 billion by 2030, growing at a CAGR of 7.1%.16

Current commercial availability of DR-quality pellet feed is limited to a small number of suppliers: Anglo American’s Minas Rio operation in Brazil, Kaunis Iron in Sweden, Champion Iron in eastern Canada, and CMP in Chile.17 This scarcity, combined with accelerating demand, creates significant opportunities for new entrants with the right product specifications.

Midrex Technologies, which dominates the DRI market, supplied 75.7 million tonnes in 2024, representing more than 80% of shaft-furnace DRI production.18

Athena’s Strategic Position

The Byro Magnetite Project sits at the intersection of several powerful trends:

Quality: Demonstrated capability to produce 70.61% Fe concentrate positions Byro to meet the most demanding DR-grade specifications.9

Location: Situated approximately 340km from the Port of Geraldton within WA’s emerging green industrial corridor, with access to the state’s abundant renewable energy potential.

Scale potential: The March 2025 commencement of resource drilling at Byro South comprises approximately 1,100 metres across eight planned drill holes, building on previous drilling of over 3,000 metres to expand known magnetite mineralisation and support a maiden Mineral Resource Estimate.9

Strategic backing: Fenix Resources’ significant shareholding (28.97% as of January 2025) provides validation and potential operational synergies.19

Looking Ahead

The transition from blast furnace steelmaking to DRI-EAF is happening now. Major steel producers globally are announcing DRI investments, driven by both regulatory pressure and commercial opportunity.

For Athena Resources, this represents an opportunity to evolve from exploration to becoming a strategic supplier of critical materials for the global decarbonisation journey. By focusing on the quality attributes that DRI and other premium applications demand, we’re positioning Byro as a source of smart magnetite solutions for tomorrow’s industries.

The iron revolution isn’t about mining more. It’s about mining smarter. And premium magnetite is at the heart of that transformation.

Athena Resources Limited (ASX: AHN) is focused on developing its Byro Magnetite Project in Western Australia to supply premium magnetite products for sustainable steelmaking and advanced industrial applications. For more information, visit our Project Overview or contact our investor relations team.

References:

  1. S&P Global Commodity Insights (2022). “Direct-reduced iron becomes steel decarbonization winner.” https://www.spglobal.com/commodityinsights/en/market-insights/blogs/metals/062222-dri-steel-decarbonization-direct-reduced-iron ↩
  2. ScienceDirect (2024). “Direct reduction of iron to facilitate net zero emissions in the steel industry.” https://www.sciencedirect.com/science/article/abs/pii/S0959652624003809 ↩
  3. Industrial & Engineering Chemistry Research (2024). “Prospective Life Cycle Assessment Suggests Direct Reduced Iron Is the Most Sustainable Pathway to Net-Zero Steelmaking.” https://pubs.acs.org/doi/10.1021/acs.iecr.4c03321 ↩
  4. IEEFA (2024). “Hydrogen unleashed: Opportunities and challenges in the evolving H2-DRI-EAF pathway beyond 2024.” https://ieefa.org/resources/hydrogen-unleashed-opportunities-and-challenges-evolving-h2-dri-eaf-pathway-beyond-2024 ↩
  5. Midrex Technologies (2025). “The Iron Ore Challenge for Direct Reduction On Road to Carbon-Neutral Steelmaking.” https://www.midrex.com/tech-article/the-iron-ore-challenge-for-direct-reduction-on-road-to-carbon-neutral-steelmaking/ ↩
  6. IEEFA (2022). “Iron ore quality a potential headwind to green steelmaking.” https://ieefa.org/resources/iron-ore-quality-potential-headwind-green-steelmaking-technology-and-mining-options-are ↩
  7. IEEFA (2022). “Iron Ore Quality a Potential Headwind to Green Steelmaking.” https://ieefa.org/sites/default/files/2022-06/Iron%20Ore%20Quality%20a%20Potential%20Headwind%20to%20Green%20Steelmaking_June%202022.pdf ↩
  8. ScienceDirect Topics. “Iron Ore Pellet – an overview.” https://www.sciencedirect.com/topics/chemical-engineering/iron-ore-pellet ↩
  9. Athena Resources ASX Announcement (28 March 2025). “Commencement of Resource Drilling at Byro South.” ↩ ↩2 ↩3
  10. Athena Resources. “Global green steel opportunity for Western Australia.” https://athenaresources.com.au/news/global-green-steel-opportunity-for-western-australia/ ↩
  11. Ibid. ↩
  12. Battery Technology Online. “Iron-Based Cathodes: The Future of Lithium-Ion Batteries.” https://www.batterytechonline.com/materials/iron-based-cathodes-the-future-of-lithium-ion-batteries ↩
  13. RenewEconomy. “Biggest vanadium flow battery in Australia promised for ailing Kalgoorlie grid.” https://reneweconomy.com.au/biggest-vanadium-flow-battery-in-australia-promised-for-ailing-kalgoorlie-grid/ ↩
  14. LKAB Minerals. “Heavy media separation with Magnetite.” https://www.lkabminerals.com/product-application/heavy-media-separation/ ↩
  15. MIT News (2017). “A new contrast agent for MRI.” https://news.mit.edu/2017/iron-oxide-nanoparticles-contrast-agent-mri-0214 ↩
  16. Grand View Research (2025). “Direct Reduced Iron Market Size & Trends Report.” https://www.grandviewresearch.com/industry-analysis/direct-reduced-iron-market-report ↩
  17. Midrex Technologies (2020). “DR-Grade Iron Ore Pellets – A Supply Overview.” https://www.midrex.com/tech-article/dr-grade-iron-ore-pellets-a-supply-overview/ ↩
  18. Persistence Market Research (2025). “Direct Reduced Iron (DRI) Market Size & Future Growth, 2032.” https://www.persistencemarketresearch.com/market-research/direct-reduced-iron-market.asp ↩
  19. MarketScreener (2025). “Athena Resources Limited Announces Commencement of Resource Drilling at Byro South.” https://www.marketscreener.com/quote/stock/ATHENA-RESOURCES-LIMITED-10354739/news/Athena-Resources-Limited-Announces-Commencement-of-Resource-Drilling-at-Byro-South-49526030/ ↩