The study revealed that the project has a post-tax Net Present Value (NPV) of USD 9.8 billion and an Internal Rate of Return (IRR) of 18.6%, positioning Iron Bear as one of the most valuable undeveloped iron ore assets globally.
The project is planned to produce 25 million tonnes of high-grade iron products annually, consisting of 16 million tonnes of blast furnace concentrate and 9 million tonnes of direct reduction pellets, aiming to play a significant role in low-carbon steel production. Metallurgical tests have shown that Iron Bear can produce blast furnace concentrate with 69.8% Fe and direct reduction concentrate with 71% Fe, placing it in the premium segment of the global market thanks to its ultra-low silica content.
Environmental and Economic Advantages
Magnetite ore reduces carbon emissions by requiring 15–20% less energy during processing. The project will be fully powered by renewable energy, implement dry tailings management, and carry out the progressive rehabilitation of mine sites. Collaboration with local Indigenous communities and job creation are also key components of the development framework.
Strategic Partnership with Vale
In February 2025, Vale SA—one of the world's largest iron ore producers—became Cyclone’s strategic partner for the project. Under the partnership, Vale will fund the initial USD 18 million for the pre-feasibility study, followed by up to USD 120 million in additional funding in the second phase, in exchange for a 75% stake in the project.
Cyclone Metals CEO Paul Berend stated:
"Iron Bear presents a unique opportunity for a sustainable and low-cost iron ore production operation. With Vale’s support, we will deliver high-quality magnetite products that enable low-carbon steel production."
The pre-feasibility study is expected to be completed by Q2 2026.
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