Pilbara Iron Ore Industry
Iron ore mining has played a pivotal role in the development of the Pilbara region from its beginnings in the 1960s. Over the past three decades, the growth of the Pilbara iron ore industry has generated thousands of jobs and numerous growth opportunities for residents and businesses.
Today, the region accounts for over 95% of Australia’s iron ore exports, with annual exports worth over A$8 billion in 2004/05. Virtually all of this production is exported, primarily to Asian markets.
Australia produces around 17% of the world’s iron ore and is ranked third behind China (25%) and Brazil (20%). The major producers of iron ore in the Pilbara region are BHP Billiton (BHPB), Rio Tinto, Hamersley Iron (part of the Rio Tinto group) and (from 2008) Fortescue Metal Group Limited. Rio Tinto is the world’s second largest seaborne iron ore supplier and BHP Billiton is the third largest.
Within the Pilbara there are currently some 22 mining and processing operations, employing almost 9,000 people. Several major new mines are currently being developed including Newman, Marillana Creek, Mining Area C, Goldsworthy and Yandi (BHP Billiton), Marandoo, Tom Price, Paraburdoo, Channar and Brockman (Rio Tinto/Hamersley Iron), Cloud Break (FMG), and Hope Downs (Hancock Prospecting/Iscor).
Virtually all Australia’s iron ore (98%) is mined in Western Australia, with production forecast to increase to around 322 million tonnes in 2007/08.
One of the new trends in the Pilbara Iron Ore industry has been the emergence of a junior iron ore exploration and mining sector over the past 3-4 years.
Atlas Iron was one of the first junior companies to recognise the potential of its extensive tenement holdings at Pardoo to host significant hematite resources and commenced exploration for iron ore in 2005/06. Since them, a number of new companies have initiated iron ore exploration programs.
This activity has been very successful, with the three current member companies delineating total iron ore resources over 3 billion tonnes within the past five years. This includes more than 1.6 billion tonnes of high-grade hematite, Channel Iron Deposit (CID) mineralisation and detrital ore, as well as some 1.5 million tonnes of magnetite ore.
All of the NWIOA member companies are conducting aggressive exploration, evaluation, scoping and/or feasibility studies on the development new iron ore production centres.
The currently identified forecast production capacity of these projects is up to 72 Mt/annum by 2016, which is expected to continue to increase as exploration advances.
