The Magnum Mining and Exploration Ltd (ASX: MGU) share price is on the move in mid-afternoon trade. This comes after the company announced progress on becoming a 'green' steel producer.
At the time of writing, the miner's shares are trading at 17 cents apiece, up 6.25%.
What did Magnum announce?
Investors seem pleased with the company's latest update, driving Magnum shares higher.
In its announcement, Magnum advised is has shipped Buena Vista iron ore samples to a number of international engineering firms. Specialising in hot briquetted iron (HBI) and pig iron manufacturing processes, the engineering firms will design a manufacturing plant.
Magnum also states that the facility will adopt mature and industrially proven technologies. Locally available biomass and green hydrogen supplied from its partner, AVF Energy, will also be used in the construction process. The company is aiming to produce environmentally-friendly HBI and high purity iron (HPI) products. Magnum will supply this to the United States and international steel markets. If successful, this will give the company a first-mover advantage against its competitors.
Furthermore, Magnum will finalise the plant design before the end of May 2021.
In addition, Magnum noted that it's currently in discussions for plant assembly services and operational assistance with several international firms. Further updates will be provided once the preliminary process design of the plant is available.
About the Buena Vista mine
Located in Nevada, the United States, the Buena Vista mine is positioned to become a green steel producer. The term 'green' refers to producing materials from waste products. The mine is also considered a significant magnetite mineral resource that has had $34 million invested in advancing the project.
Additionally, the mine has close access to rail, water, port, and power facilities.
Share price summary
The Magnum share price has accelerated over 325% over the past year, with most of those gains coming year-to-date. The company's shares reached an all-time high of 21 cents last week, before treading lower due to profit-taking.
Based on valuation grounds, Magnum commands a market capitalisation of around $72 million.
