Canadian company Magnetation Inc. will team up with Cargill Inc to boost its iron ore production from 150,000 metric tons per year to 450,000 metric tons. The exact details of the deal were not revealed by the two companies but Cargill will help Magnetation to take its proprietary separation technology global.
In return they will receive a new supply of iron. The vice president of Cargill Ferrous International Bob Mann said that the company already had a global customer base for iron and steel producers and consumers and this deal would help it expand its base in Asia.
Their Iron Range project will see Cargill using Magnetation’s technological help to extract valuable iron ore from long discarded tailings. The process will help mine operators extract iron ore from the rock that was dumped in open pit mining over the decades.
The two Minnesota based companies hope to capitalize on the new technology using their Iron Range project partnership. The process is seen as being so good that it may offer competition to the lowest cost iron mines. If successful commercially it would be replicated worldwide.