The Australian iron ore industry is export orientated with around 85-90 per cent of production exported. In 2008, Australia was the world’s largest exporter of iron ore, ahead of Brazil and India. Rio Tinto and BHP Billiton, two of the world’s top three exporters of seaborne iron ore have their key operations in the Pilbara region of Western Australia.
Whilst the vast majority of Australia’s iron ore is produced in the Pilbara, a number of other locally significant iron ore mining operations also exist at Koolyanobbing, Cockatoo Island, Tallering Peak, Koolanooka, Jack Hills, and Koolan Island in Western Australia; the Middleback Ranges in South Australia; Frances Creek in the Northern Territory; and Savage River in Tasmania.
The majority of iron ore produced in Australia is direct shipping quality hematite ore. However, operations that extract magnetite and other types of ore requiring beneficiation are becoming increasingly prevalent.
Industrial Uses
Iron ore is predominantly used to make steel. Rapid economic growth in developing Asia-Pacific economies has resulted in major increases in world steel production. Iron ore in Australia is generally blasted and removed from large open pit mines, before being crushed, screened and blended for export or local consumption. Once blended, iron ore is smelted and alloyed with metals (nickel, chromium, manganese, vanadium, molybdenum or titanium) to produce different types of steel. The products, depending on their grade, are used in a wide range of applications including transportation, construction, machinery, appliances and electronics.
International Engagement
Electricity is a major input to the steel production process. The steel industry is highly sensitive to electricity prices and has a significant interest in the development of Australian policy on greenhouse abatement measures. The steel industry is also one of the sectors represented amongst the eight task forces of the Asia-Pacific Partnership on Clean Development and Climate (APP). Information relating to the APP can be obtained from the Asia-Pacific Partnership on Clean Development and Climate
website.