Iron ore is Australia's fourth largest minerals earner, producing 212 Mt in 2003 compared to 187.2 Mt in 2002. About 90% of its annual production is exported to integrated steel markets in Asia. The Hamersley Range in the Pilbara region of the northwest Australia is host to 98% of Australia's iron ore mines, with minor production from Tasmania, New South Wales, Queensland and South Australia. Most of Australia’s iron ore is mined in Pilbara region in Western Australia’s north, with the bulk coming from BHP Billiton and Rio Tinto operations at Mt Newman and Tom Price. Together, the two companies produce 26% of the Western world’s iron ore. However the strong Chinese demand ishas started to encourage the development of new mines by smaller players. Australia's iron ore resources have been estimated at 32 billion tons.
BHP Billiton's wholly owned subsidiary, BHP Iron Ore Pty Ltd. is Australia's largest iron ore producer, with total reserves estimated at 3 200 Mt. BHP operates three primary iron ore operations that produce in the region of 70 Mt of ore per year, most being destined for steel makers in Japan, South Korea, China, Taiwan and Europe.
The Mount Whaleback orebody at Mount Newman mine alone contains 750 Mt of ore grading at 64.7% of which 33 Mt of high grade iron is produced per year. Other mines proximal to Mt Newman are the Orebodies 29, 23 and 25. BHP Billiton has other mines at Goldsworthy, Yandi and Jimbledar. Goldsworthy comprises the Yarrie and Nimingarra orebodies that have an annual capacity of 5.6 Mt. The Yandi Mine produces approximately 23 Mt per year and is also located close to the MAC (Mining Area C) that has resources estimated at 800Mt of high grade ore ranging from 60 - 64% iron. Jimbledar is located 40km east of Mt Newman and is wholly owned by BHP Billiton. BHP Billiton is the world’s second largest iron ore exporter, after Brazil's CVRD. BHP Billiton also has operations in South Australia, where hematite ore is mined at Iron Duke and Iron Knob in the Middleback Ranges by BHP Steel and used in iron and steelmaking at Whyalla.
Rio Tinto’s subsidiary, Hamersley Iron Pty Ltd, produced a record 68.5 Mt (equal to rated capacity) from its Paraburdoo, Mt Tom Price, Brockman, Yandicoogina and Marandoo operations. Hamersley also produced 10.59 Mt from its Channar operation which it owns in 60:40 joint venture with the Chinese Government organisation, China Metallurgical Import Export. Robe River Iron Associates (Rio Tinto 53%, Mitsui Iron Ore Development Pty Ltd 33% and Sumitomo Metal Mining Oceana Pty Ltd) produced 36.86 Mt from is Robe River, West Angelas and Pannawonica operations.
South Africa's Kumba Resources is evaluating one of the last major deposits in Australia, Hope Downs. A feasibility study is underway at Hope Downs that will have to include a 360 km railway link from the project to the nearest port facilities. Over 50% of planned capital expenditure for the development of this project hinges on developing the infrastructure to service the mine. The deposit has a recoverable resource of 442Mt grading at 61.7% iron. Production (earmarked to begin in 2004) will start at 6Mt /year and increasing to 25 Mt per year in 2008 with an estimated life of mine of around 30 years.
