VANCOUVER, British Columbia — Macarthur Minerals Limited (ASX: MIO) (TSX-V: MMS) (OTCQB: MMSDF) (the “Company” or “Macarthur”) is pleased to announce that it has signed a Strategic Partnership and Collaboration Agreement (“Agreement”) with LAVO Hydrogen Technology Holding Pty Ltd (“LAVO”) to investigate the facilitation of a staged technology solution that is intended to deliver a clear carbon reduction strategy for Macarthur’s flagship Lake Giles Iron Project (“Project”) in the Yilgarn region of Western Australia, with a first phased roll-out to support Macarthur’s intended early hematite direct shipment ore (“DSO”) mining operations at Ularring.
LAVO uses an innovative, patented metal hydride to produce hydrogen energy batteries. The battery system acts as a solar sponge, integrating with solar arrays to capture and store renewable energy for use when needed. The unit creates Hydrogen from water, stores Hydrogen into LAVO’s patented metal hydride, and generates electricity by converting hydrogen into power.
LAVO is an Australian company headquartered in New South Wales. Its cornerstone investors are leading ESG investment firm Providence Asset Group (PAG) and the University of New South Wales (UNSW). Together with UNSW, PAG established the Hydrogen Energy Research Centre (HERC). HERC is the world’s leading university-industry partnership in hydrogen technologies with the main purpose of translating the university’s leading research in hydrogen production, storage and use into real-world commercial products under the brand name ‘LAVO’.
Under the Agreement, the first phase of collaboration is expected to involve Macarthur being assigned between three to five patented LAVO 40 kWh hydrogen storage units for integration into the remote worker accommodation facilities which are planned to be constructed to support a DSO mining operation at Ularring, near Lake Giles in Western Australia. (See announcement dated 26 May 2021 here).
Subject to successful project definition and satisfactory supporting economics being assessed, the LAVO hydrogen storage units could be installed on-site at Ularring as early as Q4 2021.
If the trial program at Ularring is successful, then Macarthur and LAVO intend to examine opportunities to develop a fully localized micro-grid engineering solution that includes a solar PV array, a centralized hydrogen hydride containerized storage system, and an appropriately sized fuel cell to support the energy requirements for Macarthur’s planned high-grade magnetite iron ore mine at Lake Giles, following the successful delivery of the Company’s current Feasibility Study. This could involve the integration of larger, containerized ‘HEOS’ hydrogen energy batteries with up to 13 MWh of capacity (currently being developed by LAVO), potentially delivering energy to Macarthur’s magnetite operations at a commercial scale.
Alan Yu, CEO of LAVO commented:
“Macarthur Mineral’s pursuit to de-carbonize mining and provide resources for green steel production is the market leader and an endeavor that LAVO is excited to be involved with. We are demonstrating our LAVO hydrogen hydride technology has practical, environmental, and economically viable applications that extend from residential to significant mining projects. The LAVO | HEOS hydride platform aids in the transition to carbon neutrality across many sectors, integrating with existing infrastructure to support the heartland of industry in rural Australia. The potential for energy independence in the mining sector will reduce costly capital works and leverage the current transport gateways to drive profitable growth and improve environmental impacts.”
Andrew Bruton, CEO of Macarthur Minerals commented:
“Macarthur is pleased to be partnering with LAVO on this ground-breaking initiative. Macarthur plans to roll out integration of LAVO hydrogen storage units at Ularring to support intended early DSO hematite mining operations.
This collaboration is also aimed at enabling Macarthur to achieve a clear carbon reduction strategy for its planned future magnetite operations at Moonshine, as it can allow for potential integration with magnetite processing on a modularised and gradual ‘scale-up basis over a target 5 to 10-year time horizon.
The first stage of the agreement will allow Macarthur to work with LAVO in the early stages of project planning at Ularring for DSO, so that we can examine opportunities for the scale-up of an integrated hydrogen energy technology solution on-site at Moonshine for the magnetite.
By adopting this staged approach and becoming an “early follower”, rather than a “first adopter” Macarthur will have the opportunity to contain technology, capital, and pricing risk so as to ensure that it achieves the lowest possible levelised cost of energy delivery for its magnetite processing.
The partnership is also great news for an emerging Western Australian hydrogen industry. It has the potential to create an opportunity for a regional energy and logistics solution using hydride to help manage the problem of empty shipping containers moving between the region and ports. Switching to a rail or road-based Energy IN – Product OUT container approach could be a huge story for the mineral resources sector in WA and the Goldfields region in particular.
It’s another example of how going green can be profitable where there is a potential to exploit renewable energy assets far from the grid, and Macarthur is proud to be part of this emerging story as a company that is committed to the highest levels of ESG compliance.” On behalf of the Board of Directors, Mr. Cameron McCall, Executive Chairman
About Macarthur Minerals
Macarthur is an iron ore development, gold and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects. The Lake Giles Iron Project mineral resources include the Ularring hematite resource (approved for development) comprising Indicated resources of 54.5 million tonnes at 47.2% Fe and Inferred resources of 26 million tonnes at 45.4% Fe; and the Lake Giles magnetite resource of 53.9 million tonnes (Measured), 218.7 million tonnes (Indicated) and 997 million tonnes (Inferred). The JORC reporting tables and Competent Person statement for the magnetite and hematite mineral resources have previously been disclosed in ASX market announcements dated 12 August 2020 and 5 December 2019. Macarthur has prominent (~721 square kilometer tenement area) gold, lithium and copper exploration interests in Pilbara region of Western Australia. In addition, Macarthur has lithium brine Claims in the emerging Railroad Valley region in Nevada, USA.
LAVO™ is changing the way people live with energy. A hydrogen technology and lifestyle company, LAVO™ designs and manufactures renewable hydrogen energy storage solutions for residential and commercial use. LAVO™ will challenge convention, spark a global conversation and enable a meaningful change in attitudes and behaviours around sustainability, the environment and responsible consumerism. Founded in 2020, LAVO™ Hydrogen Technology Limited has established to fast track the commercialization of technology developed within the Hydrogen Energy Research Centre cofounded by Providence Asset Group and the University of New South Wales. LAVO is headquartered in Sydney Australia. For more information visit www.lavo.com.au.