Grange Resources Limited announced that a Prefeasibility Study has been completed to assess capital reduction options for the Southdown Magnetite Project (Southdown or the Project). A Definitive Feasibility Study completed in 2012 defined a project to produce 10 million tonnes per annum (mtpa) of high-grade magnetite concentrate at 69.5% iron, over a potential mine life of 14 years. PFS 2022, completed in February 2022, has identified a reduced-capital development option.

This involves a smaller 5mtpa concentrate production operation within the constraints of existing mineral resources and ore reserves; and is anticipated to deliver reductions in capital spend from AUD 2.9 billion down to AUD 1.39 billion. This alternative case extends the life of mine from 14 years to 28 years for the western zone, and potentially more than 50 years for the total resource. The 10mtpa DFS 2012 remains the base option, and the decision as to whether the alternative option is further studied to definitive feasibility will be an issue considered together by the joint venture partners.

Just 90km from Albany in Western Australia's Great Southern region, Southdown is a joint venture (JV) between Grange (70%) and SRT Australia Pty Ltd. (30%). SRT is jointly owned by the Sojitz Corporation, a Japanese global trading company, and Kobe Steel. The Southdown Magnetite Project is an advanced project with more than 1.2 billion tons of high-quality mineral resources, including ore reserves of 388Mt.

A Definitive Feasibility Study completed in 2012 defined a project to produce 10 million tons per annum (mtpa) of high-grade magnetite concentrate at 69.5% iron, over a potential mine life of 14 years. In February 2022 Grange completed a prefeasibility level study into an alternative development option based on a reduction of the nominal concentrate production rate to Grange recognises and respect the Traditional Owners of this Country and their connection to the lands, waters and skies. Grange would like to acknowledge the support and assistance of the Wagyl Kaip and Southern Noongar Native Title claimants, and the Menang people in the development to date of the Southdown Project.