Australia-based iron ore company Magnum Mining & Exploration Limited (Magnum) has announced that it has inked an agreement with India-based 2x1.Digital Private Limited to establish a vertically integrated 50:50 joint venture (JV) in Malaysia, which will focus on the trading, production and supply of biochar, iron ore and green pig iron.
Under the agreement, the JV will be responsible for the construction of facilities in order to trade, produce and supply biochar, iron ore and green pig iron in Malaysia. Moreover, it will undertake the management of procurement contracts and sales. The green pig iron within the scope of the project will be produced with HIsmelt technology, under which steel industry wastes and iron ore will be smelted using renewable biochar.
Initially, the term of the agreement between both companies will be two years, with an option for termination upon 90 days’ notice by either party or for renewal with the agreement of both parties.
Additionally, the JV will complement Magnum’s green pig iron project in Saudi Arabia, in which 2x1.Digital is also involved.
In November last year, the Australian company had joined forces with Saudi Arabia-based technology company Midmetal to jointly fund a feasibility study on producing zero-carbon green pig iron at Magnum’s Hlsmelt facility in Saudi Arabia, as SteelOrbis reported previously.