PERTH (miningweekly.com) – Junior Magnum Mining and Exploration has inked an agreement with US-based AVF Energy to build a green hydrogen plant at Magnum’s steelmaking facility in Nevada.
AVF has agreed to fund and build a commercial scale green hydrogen plant at Magnums’ magnetite mine site, providing Magnum with green hydrogen, at a 10% discount to market rates, for the manufacture of ‘green friendly’ hot briquetted iron (HBI) and high purity iron (HPI) products to supply into the US domestic steel market.
The ASX-listed Magnum said on Tuesday that the agreement would accelerate the development of the magnetite mine and would compress the project timeline.
“The agreements with AVF Energy allow Magnum to fast-track its mining and green steel development for the local domestic market in the US. The company is also well positioned to take advantage of the Biden administration’s infrastructure stimulus and to service the growing demand for green friendly infrastructure, particularly from California,” said Magnum MD Dano Chan.
Meanwhile, Magnum has also signed a non-exclusive sales and marketing agreement with M Resources Trading to act as a sales agent in the US for all magnetite, HBI and HPI, pig iron and steel produced from the mine or the integrated steel complex.
Magnum would pay between 1% and 1.5%, to be agreed, on the sales revenue paid monthly to M Resources in arrears, following receipt of payment from the customer.
“We are really excited to be part of this venture through the production and supply of green hydrogen with AVF Energy and Magnum. This project responds to the needs of our customers for stable supply of products with lower carbon footprints and less environmental impact during the production process,” said M Resources CEO Matt Litimore.