The 1.29 billion tonne Mt Bevan magnetite iron ore project promises a 25-year mine life producing 12 million tonnes annually, with exports likely to be routed through the Port of Esperance.

Importantly, Legacy Iron’s biggest shareholder, with 91.38 per cent of the company, is the Indian government-owned National Mineral Development Corporation (NMDC) – the nation’s biggest iron ore producer.

The NMDC made headlines last year after a much-publicised meeting in Australia was revealed between Indian Prime Minister Narendra Modi and Rinehart, to discuss, among other things, the future of the project and its importance to India’s burgeoning steel industry.

With a projected ore quality above 70 per cent iron, Mt Bevan would command a premium in steel markets and aid in reducing carbon emissions—a critical concern in today’s global steel production.

Should the major iron ore project in WA’s Yilgarn region go ahead, it would imply not only a move to more magnetite production for Australia but could also spell the beginnings of a second powerhouse iron ore jurisdiction in WA outside of the Pilbara.

And Hancock is not the only company sensing the windfall potential of magnetite out of the Yilgarn.

Just over the horizon lies Macarthur Minerals, which has carved its own magnetite foothold north west of Kalgoorlie with its Lake Giles Moonshine magnetite iron ore project.

Located a short distance from Mt Bevan, Macarthur’s Lake Giles Moonshine and other related deposits boast total resources in excess of 1.2b tonnes of ore.

The Moonshine deposit alone comes replete with a 218m tonne indicated resource going 27.5 per cent iron and an inferred resource of 449m tonnes grading 27 per cent iron. The company has already eked out a 54m tonne reserve at Moonshine at 30.8 per cent Fe that it says will beneficiate up to a handy 66 per cent iron that would fetch a premium in the market. This too would be slated to follow Mt Bevan’s product down the Kalgoorlie railway and out the Port of Esperance in its production scenario.

Macarthur recently sold the rights to its adjacent 80-million tonne hematite Ularring project to iron ore newcomer Gold Valley.

Gold Valley has secured all-important Esperance port capacity and offtakes with major metals trader Glencore and a $5 million payday awaits Macarthur after the first 1m tonnes has been shipped and a further $5m will drop into Macarthur’s tin after the 2nd million tonnes has been shipped. Macarthur will then pick up a $1 a dry metric tonne royalty thereafter.

The transformational deal could reap a total massive payout of more than $70 million for Macarthur over time – which would be handy as it looks to muscle its way into the magnetite iron ore scene amongst the billionaires with Moonshine.

Gold Valley just this month celebrated its first shipment out of the Port of Esperance, providing something of an indicator that despite its southerly location, the Esperance port may still be a viable option for WA bulk tonnage producers looking to ultimately ship their product to China and other northern jurisdictions via Esperance.

The potential revenue will fuel Macarthur’s ambitions to push the Lake Giles Moonshine magnetite project into high gear, with Macarthur chairman Cameron McCall expansively suggesting the Yilgarn magnetite region, could represent something mirroring Twiggy Forrest’s success with FMG or the Pilbara iron ore opportunity from some 30 years ago.

Another that stands to benefit from a growing Esperance hub and the move to cleaner magnetite concentrate is ASX-listed minnow Reedy Lagoon and its Burracoppin magnetite project between Perth and Kalgoorlie.

Reedy Lagoon’s magnetite deposit is well positioned with existing open access infrastructure including, rail and the Esperance port facilities, with the company planning further drilling and metallurgical testwork to establish Indicated resources which, if achieved, will enable financials for the mining and production of a magnetite iron concentrate.

As Rinehart, Forrest and other billionaire types move to capitalise on magnetite’s market potential, it’s clear that Western Australia’s mining frontier is expanding—and the Yilgarn/Esperance connection might just become the epicentre of a new iron ore revolution that could rival the heydays of the Hancock and Wright Pilbara legacy.

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