Hawsons Iron Lifts Concentrate to 69.3% Fe With No Added Operating Cost
Key Takeaways
- Bulk-scale elutriation testwork at ALS Perth upgraded Hawsons Iron concentrate from 67.8% Fe to 69.3% Fe — a 1.5 percentage point improvement achieved with no increase in operating costs.
- Silica (SiO₂) was reduced by approximately 39% from 4.04% to 2.48%, and alumina (Al₂O₃) fell 28% from 0.40% to 0.29%, with phosphorus at an exceptionally low 0.006% in the final product.
- Elutriation is a bolt-on, chemical-free water-based process applied at the tail end of the existing flowsheet, meaning grade improvements translate directly to potential revenue uplift per tonne without redesigning the circuit.
- Approaching the 70% Fe threshold positions Hawsons concentrate for premium pricing tiers with DRI and EAF steelmakers, and for reduced exposure to the EU Carbon Border Adjustment Mechanism (CBAM) relative to typical hematite ore.
- Elutriation has been confirmed for inclusion in the Pre-Feasibility Study flowsheet, with fine-tuning of operating conditions and formal economic assessment to be completed during the Feasibility Study.
Bulk elutriation testwork lifts Hawsons concentrate to 69.3% Fe
Hawsons Iron (ASX: HIO) has completed bulk-scale elutriation testwork on magnetite concentrate from the Hawsons Iron Project, upgrading the Fe grade from 67.8% Fe to 69.3% Fe while substantially reducing key impurities. The results confirm the inclusion of elutriation in the Pre-Feasibility Study (PFS) flowsheet and establish a platform for further optimisation during the Feasibility Study.
Key results from the testwork, conducted at ALS Perth, include:
- Fe grade upgraded from 67.8% to 69.3% (a 1.5 percentage point increase)
- Silica (SiO₂) reduced by approximately 39%, from 4.04% to 2.48%
- Alumina (Al₂O₃) reduced by approximately 28%, from 0.40% to 0.29%
- Phosphorus in the final product: an exceptionally low 0.006%
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What elutriation is and why it matters for iron ore investors
Elutriation is a physical, water-based separation process. It works by exploiting the density difference between dense magnetite particles and lighter gangue minerals (the unwanted material, primarily silicates, aluminosilicates, and carbonates that remain in concentrate after magnetic separation). No chemicals are involved.
In practice, water is introduced at a controlled upward flow rate inside a column vessel. The lighter gangue particles are lifted by the upflowing water and overflow out of the vessel, while the heavier magnetite settles and is collected. The process is applied at the final stage of the existing flowsheet, making it effectively a bolt-on addition rather than a redesign.
That last point is where the investment logic sits. Because elutriation operates at the tail end of the process, any improvement in product grade adds no meaningful cost to mining or processing operations. A higher-Fe, lower-impurity concentrate can access premium pricing tiers in iron ore markets, particularly from direct reduction ironmaking (DRI) and electric arc furnace (EAF) steelmakers who prioritise productivity, energy efficiency, and lower emissions. The grade improvement translates directly into potential revenue uplift per tonne, with no corresponding increase in mine production required.
Managing Director Tom Revy framed it plainly:
Tom Revy, Managing Director
“Grades at this level add zero to our operating costs while attracting a materially higher revenue stream = improved Project economics.”
Bulk sample results and what they show
The testwork used bulk magnetite concentrate produced from Hawsons drill core during metallurgical testwork undertaken at ALS Perth during 2025. The before-and-after results are summarised below.
| Sample | Fe (%) | SiO₂ (%) | Al₂O₃ (%) | P (%) |
|---|---|---|---|---|
| Feed (pre-elutriation) | 67.8 | 4.04 | 0.40 | 0.008 |
| Product (post-elutriation) | 69.3 | 2.48 | 0.29 | 0.006 |
Additional elements in the upgraded product were also measured, with reductions across the board:
- Manganese (Mn): 0.02% (unchanged)
- Calcium oxide (CaO): reduced from 0.19% to 0.12%
- Magnesium oxide (MgO): reduced from 0.26% to 0.18%
- Titanium dioxide (TiO₂): reduced from 0.07% to 0.06%
The upgraded product maintains the premium characteristics that differentiate Hawsons concentrate from typical globally traded hematite ore. Phosphorus at 0.006% is exceptionally low, and the combined gangue load (silica plus alumina) sits well below the 3–5% range typical of pre-elutriation magnetite concentrate. Approaching the 70% Fe threshold places the Hawsons product in a category that commands meaningful price premiums in premium iron ore markets.
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Premium positioning and what comes next
The strategic relevance of a high-grade, low-impurity magnetite product extends beyond spot pricing. The announcement compares the Hawsons target magnetite product against typical hematite ore across several dimensions that matter increasingly to global steelmakers:
- DRI productivity: High (Hawsons) vs. lower (typical hematite)
- Energy required for DRI/EAF: Lower (Hawsons) vs. higher (typical hematite)
- Hydrogen DRI suitability: Excellent (Hawsons) vs. limited (typical hematite)
- Embedded CO₂ intensity: Lower (Hawsons) vs. higher (typical hematite)
- EU Carbon Border Adjustment Mechanism (CBAM) exposure: Reduced (Hawsons) vs. elevated (typical hematite)
- Green steel certification potential: Strong (Hawsons) vs. weaker (typical hematite)
The EU CBAM is a carbon pricing mechanism applied to imports into the European Union based on the embedded emissions of the product. A lower-emissions magnetite concentrate like the Hawsons target product would face lower CBAM costs than high-impurity hematite, an advantage that is expected to grow in significance as the mechanism matures.
On next steps, the company has outlined a clear pathway forward:
- Fine-tuning of elutriation operating conditions to be undertaken during the Feasibility Study
- Assessment of parameters aimed at maximising product quality, recovery, and overall project economics
- Results to be incorporated into the continued development and refinement of the Hawsons Iron Project flowsheet
The announcement notes that the potential increase in product value could translate into higher revenue and improved operating margins without requiring a corresponding increase in mine production, subject to large-scale orebody variability testwork and further economic assessment. That qualifier matters: the upside case is real but conditional on further study, and the Feasibility Study is where those parameters will be formally assessed.
What the testwork establishes now is the underlying physics and the product quality. Elutriation works at bulk scale on Hawsons concentrate, the grade improvement is repeatable and meaningful, and the impurity profile is already at levels that position the product for premium market access. The economic translation of that technical result is the work ahead.
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