Summary
We are excited to announce our investment in DryFlow Magnetics, an Australian industrial technology company with a patented dry magnetic separation technology for iron ore.
We are co-leads and the largest investor in DryFlow’s $10m Seed raise, alongside Orion Industrial Ventures (part of Orion Resources Group) and Taronga Group.
The Challenge
Australia’s iron ore sector is enormous – by far the country’s biggest export earner and a globally system-critical industry. However, the industry is facing an existential threat in the form of declining ore quality and increasing competition, including from the recently online Simandou mine in Guinea, termed the ‘Pilbara killer’ due to its large volume of high-quality ore. Higher quality ores are expected to be increasingly in demand as lower levels of impurities mean they can reduce the emissions of existing steel production and are also necessary for green steel production pathways such as electric arc furnaces.
Miners in Australia and abroad are seeking a cost effective, scalable solution to beneficiate ores to higher purities of at least 65% iron content and ideally 67%+, to remain market-relevant in the 2030s. Existing solutions typically have very high water consumption and there is a gap in the market for a technology that works in dry climates.
Enter DryFlow Magnetics
DryFlow’s dry magnetic separation technology utilises a system of moving conveyer belts and solid-state magnets to create a dynamic induction zone which is able to separate magnetic iron ore particles from non-magnetic tailings, to improve the purity of the ore. Their pilot plant has proven their ability to upgrade low-grade iron ore, under 30% iron content, to 67%+.
DryFlow operates using a staged approach which can separate efficiently at large particle sizes initially to reduce energy consumption required. It also operates without water, which has historically left billions of tonnes of mineral assets in highly remote regions stranded and uneconomic to process.
The Founders’ Story
DryFlow was co-founded by Brett Boynton (CEO) & Jon Robbeson (COO), who have worked together extensively in past, including in the dry processing space at AgriPower and in commodities at Signature Gold. After being introduced to the technology, the pair recognised the game changing opportunity it unlocks, and decided to lead a team to scale and commercialise it.
Why We Invested
- Large industry with a burning platform: As outlined above, Australia has a burning platform to upgrade its iron ore to fend off increasing competition and meet growing demand as the industry starts to decarbonise.
- Step change in beneficiation: Other magnetic separation technologies exist, but DryFlow offers a number of advantages over these- including lower capex and opex, and eliminating the key challenges other technologies have faced such as water consumption, moisture intolerance and inability to scale.
- Commercial team with strong ability to execute: We’ve been very impressed by Brett’s strong corporate development and transaction pipeline skills, and Jon’s technical excellence. They have led the team to unlock strong traction in the year since the business’s incorporation- including developing a pilot plant and gaining strong interest from a large number of industry players.
Use of funds
Dryflow already has a pilot facility operating in Adelaide at the Bureau Veritas testing facility. The company has been supported with funding from the CSIRO and South Australian Government. This capital raise will fund construction and commissioning of a 20 tph demonstrator on-site at a mining facility in northern South Australia. Successful operation of this demonstration should allow the company to build a strong pipeline of commercial customers. We are excited to support the DryFlow team as they scale this innovative technology and help unlock the value of Australia’s iron ore resource. For further details or any questions, please reach out to Blair Pritchard.
