IRON ORE SERIES: Australia's Athena targets green steel markets for iron ore

The arrival of Simandou's high-grade iron ore has the potential to alter the landscape of the iron ore markets. This is the fourth of a six-part interview series, in which Platts News has talked to magnetite ore producers to discuss their strategy and competitive advantage.

Athena Resources Ltd.'s West Australian magnetite ore should find a home in the Middle East and European markets where direct-reduced iron capacity is being built out, according to Chairman John Welborn.

Athena announced a maiden mineral resource estimate of 47.0 million metric tons at 29% Fe for the Byro South prospect in November 2025, but metallurgical test work using the project's ore has produced samples of above 70% Fe concentrate.

DRI testing started in Europe in September 2025 on magnetite concentrate from Athena's Byro project in Western Australia. With demonstrated concentrate sample grades exceeding 70% Fe and low impurities, the company has been assessing whether its concentrate samples meet the stringent requirements of emerging "green steel" technologies.

"The iron ore business has hundreds of millions of tonnes of output from producers like BHP, Rio Tinto, Fortescue and Hancock Iron Ore leading the industry," Welborn said. "What we want to do with Athena is actually operate under the radar to market our product to the European and Middle East green steel opportunities which are developing."

Welborn is also executive chairman of Fenix Resources, which was Athena's largest shareholder with a 37.21% share, as of Nov. 27, 2025, according to a same-day presentation from Athena.

"Longer term, there is clearly an opportunity for higher-grade concentrates that are going to be demanded by electric arc furnace, DRI, pelletizing and cleaner steel production," Welborn said of Byro's potential.

"That's somewhat in conflict to our existing business, which is to provide high-quality hematite ores to blast furnace customers," Welborn said of Fenix's strategy.

Fenix's investment in Athena has been made with "an eye to the future as to where we think the market will go," Welborn said.

"If you've got an electric arc furnace or a green steel plant, you need something about 67% [Fe purity], usually 68%," Welborn said.

"That is a bit of a challenge for a lot of the larger-scale magnetite producers, which is why we're excited about Athena because it fits our model of low strip ratio, near surface, simple mining, and we think there's a simple processing route to get to that green steel quality magnetite concentrate."

Athena is also collaborating with Fenix and Warradarge Energy to establish a new "green iron" project in Western Australia's Mid West region, where Warradarge Energy is planning a green hydrogen project, which is derived from the electrolysis of water.

Multiplying production

Fenix itself has been one of the fastest-rising iron ore producers globally, increasing output by the largest percentage year over year over the quarter ended Sept. 30, 2025, according to an analysis of S&P Global Market Intelligence data.

On Dec. 11, 2025, Fenix published a three-year plan to increase iron ore production from 2.5 million mt in fiscal 2025 (July-June) to between 5.4 million mt and 6 million mt in fiscal 2028.

The plan will see Fenix complete mining at the Iron Ridge and Shine mines in Western Australia and transition to production at the Weld Range project from the Beebyn-W11 mine and nearby deposits, collectively known as the Beebyn Hub.

Under this plan, operations will continue through to 2042 over a 14-year scoping study life-of-mine, including a 10 million mt/year production rate for 11 years, starting from 2031.

Welborn said the plan will also place Fenix in the bottom half of the global cost curve, with life-of-mine C1 cash costs reduced to about A$55.40/wet metric ton ($39.20/wmt) FOB Geraldton, a 27% reduction below the midpoint of Fenix's fiscal 2026 guidance of A$70-$80/wmt

Fenix secured the Weld Range project in September 2025 when it signed a binding 30-year exclusive right-to-mine agreement with Sinosteel Midwest Corp., a subsidiary of China Baowu Steel Group, to mine and export iron ore from the Weld Range hematite iron ore project.

Weld Range has a 290 million mt measured, indicated and inferred mineral resource estimate, which Welborn said makes it "the largest highest quality direct shipping ore iron ore project in Australia not owned by a major."

Most of Fenix's product goes to China, with some shipments also going to Indonesia, South Korea and Malaysia on shorter shipping routes, which benefits those customers, according to Welborn.