Grange Resources Ltd.

Grange Resources Ltd. is a junior iron producer headquartered in Burnie, Australia, operating primarily in Australia. The company's portfolio consists of 3 projects, comprising 1 operating mine, 1 development, and 1 reclamation project. Key assets include Savage River and Southdown Magnetite. The company operates as an experienced, vertically integrated producer with over 5 decades of history in mining, processing, and manufacturing premium-quality refined products. Its business model encompasses the entire value chain, from resource extraction to operating a downstream pelletizing plant and a wholly-owned port facility for global distribution. This integrated structure is capital-intensive, requiring significant investment in beneficiation and processing infrastructure. The enterprise manages sales through a combination of spot market transactions and long-term contractual arrangements with customers primarily in the Asia-Pacific region. Its final product commands a value premium, derived from higher purity and lower levels of impurities, which provides both quality and environmental advantages for end-users in the steelmaking industry. The company's long-standing operational experience is a key differentiator, supporting its position in the market for high-specification raw materials.

Strategic priorities center on ensuring long-term operational viability by integrating a transition from surface to underground mining methods, a move designed to extend asset life, lower costs, and reduce environmental emissions. The business strategy focuses on de-risking operations by optimizing this transition, maintaining access to ore through disciplined development investment, and preserving critical processing infrastructure to enhance flexibility during commodity price cycles. Innovation is a core driver, with initiatives focused on introducing automation, upgrading equipment tracking systems for efficiency, and evaluating alternative energy sources to support operational improvements and potential expansion. Management is also developing initiatives to address new markets driven by climate change, positioning its low-impurity products to capture a potential "green premium." A key objective is expanding market reach beyond the Asia-Pacific region while continuing to deliver on secured off-take agreements and implementing rigorous cost-control measures.

The board of directors is composed of 6 members, including 1 executive director and 5 non-executive directors, of whom 3 are classified as independent. This composition represents a stated departure from ASX recommendations for a majority-independent board. Oversight is conducted through an Audit and Risk Committee and a Remuneration and Nomination Committee, each with 3 members. The Chairperson, Dr. Michelle Li, possesses over 30 years of international mining experience, including senior executive roles at major global resource companies. The governance framework acknowledges the absence of a dedicated internal audit function, a decision based on the company's size; however, management conducts periodic internal financial reviews, and Deloitte Australia is engaged for external reviews of the financial system. Executive remuneration combines fixed pay, short-term cash incentives tied to corporate and individual performance, and long-term incentives through deferred cash and performance rights linked to total shareholder return and other strategic business objectives.

The organization has adopted the World Economic Forum's ESG framework and established a decarbonization roadmap with targets to reduce Scope 1 and 2 emissions by 50% by 2030 and achieve net-zero by 2035. Key initiatives supporting this goal include furnace efficiency upgrades to eliminate anthracite use and a planned transition to an electric underground mine, which is projected to reduce site-specific emissions by 80%. The company is a founding partner in the Heavy Industry Low Carbon Transition Cooperative Research Centre and has secured government grants for its decarbonization projects. Workplace safety is a primary focus, with the implementation of an operator alertness system and a collision avoidance system for the mining fleet contributing to achieving over 600 days without a lost-time injury. Environmental management is governed by detailed plans for rehabilitation and waste management to mitigate acid drainage. Social responsibility programs include ongoing stakeholder dialogue, support for local education through graduate programs, and participation in a mutual aid emergency response committee.

The corporate structure is significantly influenced by its largest shareholder, Shagang International Holdings Ltd, which holds a 47.93% interest and is party to a long-term off-take agreement for a portion of the company's production. In 2023, the company consolidated its ownership of the Southdown development project by reacquiring the remaining 30% interest for a consideration of $15.1 million plus duties, now holding 100% of the asset. The organization is currently seeking new joint venture partners to advance this project's development. The group also holds a 30% minority interest in the Mt Windsor joint venture with partner Thalanga Copper Mines Pty Ltd; this asset is currently undergoing rehabilitation for future lease relinquishment. Key operational subsidiaries include Grange Resources (Tasmania) Pty Ltd, which holds the primary operating assets, and Grange Resources (Southdown) Pty Ltd, which holds the main development asset.