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Highlights:

  • AHN enters agreement to co-develop Mid West Green Iron Project.
  •  The company to supply ore from Byro Magnetite Project for green hydrogen reduction trials.
  • AHN's New joint venture company, Mid West Green Iron Pty Ltd, to oversee staged development.

Athena Resources Limited (ASX:AHN) has entered into a Memorandum of Understanding (MoU) with Warradarge Energy Pty Ltd and Fenix Resources Limited to collaboratively develop a green iron production project in Western Australia’s Mid West region. The initiative, titled the Mid West Green Iron Project, aims to use high-grade magnetite and locally produced green hydrogen to manufacture direct reduction iron (DRI) products.

The three parties have agreed to establish a new project vehicle, Mid West Green Iron Pty Ltd, which will be equally owned and serve as the entity responsible for the development and planning of the initiative. The Project is expected to progress in multiple phases, starting with validation trials and extending toward the long-term goal of commercial-scale production.

Athena Resources is a Perth-based mineral exploration company focused on the development of its 100%-owned Byro Magnetite Project in Western Australia. The project contains high-grade magnetite resources with the potential to produce a concentrate grading around 70% Fe, aligning with feedstock requirements for emerging green iron production technologies.

Under the terms of the MoU, Athena’s initial contribution will be the provision of magnetite concentrate samples from the Byro Magnetite Project. These samples will be used to trial various hydrogen-based reduction processes to assess the technical and economic viability of green iron production using local inputs. This phase, referred to as the Validation stage, will also explore whether value-added green iron products such as pellets or briquettes can be produced at scale under sustainable conditions.

The Validation phase is intended to run concurrently with each party’s core project activities. Athena will continue to advance the development of its Byro resource, Warradarge Energy will progress its Mid-West Green Hydrogen Project, and Fenix, the largest shareholder in Athena, will manage logistics solutions through its Newhaul operations. The Validation phase is scheduled to conclude by the end of calendar year 2026.

Green iron refers to iron produced using processes powered by renewable energy, primarily hydrogen, instead of fossil fuels like coal. This transition can significantly reduce carbon emissions from steel production, a sector responsible for roughly 8% of global CO₂ emissions. The process relies on the chemical reduction of iron ore where hydrogen acts as the reducing agent. If the hydrogen is generated using wind or solar power, the resulting iron product can have emissions up to 90% lower than traditional blast furnace methods.

Currently, high-grade iron ore concentrates typically with iron content above 65% Fe are required for efficient green iron production. Magnetite, which can be upgraded through beneficiation, is considered a suitable and increasingly preferred feedstock. Athena’s Byro Project, with its potential to deliver concentrate at or above 70% Fe, aligns with these requirements.

Western Australia’s Mid West region offers several advantages for such an initiative. It hosts extensive undeveloped magnetite resources and has strong potential for renewable energy generation due to consistent wind and solar conditions. 

Athena has emphasised that its involvement in the Mid West Green Iron Project will not require significant capital outlay beyond its current plans for the Byro Magnetite Project. The company views participation in the project as a pathway to develop downstream opportunities and explore domestic markets for its high-grade product alongside traditional export avenues. Further announcements on the project's progress, including technical validation and early-stage development planning, are expected as the consortium moves toward the 2026 target for Phase 1 completion.

AHN trading at AUD 0.0080 per share as on 14 july 2025.