Arrow Minerals Limited Reports Exceptional Iron Ore Quality from Simandou North Project
Arrow Minerals Limited has shared outstanding metallurgical testwork results that underscore the premium quality of iron ore from its Simandou North project in Guinea. These findings demonstrate a high-grade iron ore product that is notably low in alumina and silica, which are essential for steelmaking industries.
The company has recently entered into a Memorandum of Understanding with Baosteel Resources Holding, a subsidiary of the world’s largest steel producer, Baowu Steel Group. This collaboration sets a framework for potential iron ore sales from the Simandou North site, enhancing Arrow’s market reach. The partnership also provides strategic access to the Simandou port, rail infrastructure, and international markets, fostering the development of Arrow's iron ore and bauxite ventures.
The Simandou North project has garnered attention due to its significant exploration target, which ranges from 281 million metric tons to 716 million metric tons of Simandou Formation Oxide Banded Iron Formation with iron content between 33-46%. Arrow’s exploration and metallurgical efforts have validated that a simple wet gravity process could yield a high-quality hematite fines product with an iron content of 61-64%, while maintaining low alumina levels.
Stage 1 and Stage 2 Metallurgical Testwork Insights
Arrow’s metallurgical testwork is unfolding in phases, with Stage 1 testwork completing successfully earlier in 2024. The results showcased an iron ore product capable of achieving a premium market price, ranging from an additional US$10 to US$15 per ton compared to the standard 62% iron content Pilbara fines. The Stage 2 metallurgical testwork program, which began later in 2024, focuses on refining the processes and characterizing the ore types from the project more comprehensively. This phase will provide the necessary data to estimate the capital and operational costs of the processing plant in preparation for a scoping study.
A critical part of the Stage 2 work involves examining two primary rock types from the deposit: Friable and Intact Oxide BIF ores. By exploring these ore types through a broader suite of drill samples, the company aims to optimize the process flow options. Arrow’s testwork is being supported by Nagrom, a well-known metallurgical laboratory based in Perth, with specialized advice from Mineral Technologies, an expert in mineral separation.
Arrow Managing Director David Flanagan has expressed his satisfaction with the results, highlighting that the high-quality ore from Simandou North could attract a premium price due to its low alumina content, an increasingly rare trait in the global iron ore market.
Strategic Partnership with Baosteel
The MoU with Baosteel Resources Holding is a pivotal step in advancing the Simandou North project. Baosteel, being a major player in the global steel industry, provides not only a potential market for the iron ore but also valuable insights into the development of the adjacent Simandou blocks 1 and 2, which are under active development by Baowu Group. Arrow aims to take advantage of the infrastructure development, particularly the commissioning of the Trans-Guinean multi-user railway, scheduled for late 2025. This railway is expected to significantly streamline the transportation of iron ore from the mine to the port, facilitating more efficient export routes.
The partnership, therefore, promises to strengthen Arrow’s position in the iron ore market while providing a robust framework for future growth and development. By collaborating with Baosteel, Arrow can ensure that its high-quality ore will reach global markets at favorable prices, potentially enhancing its long-term profitability and competitiveness in the industry.
Arrow Minerals continues to engage in key development steps for the Simandou North project, making significant strides toward realizing its full potential in the global iron ore sector.
