Iron Ore

Content maintained by Daisy Summerfield¹

• Iron Ore
• Resources
• Accessible EDR
• JORC Reserves
• Exploration Expenditure
• Production
• World Ranking
• Industry Developments

Iron (Fe) is a metallic element which constitutes about 5% of the Earth’s crust and is the fourth most abundant element in the crust. Iron ores are rocks from which metallic iron can be economically extracted. The principal iron ores are hematite (Fe₂O₃) and magnetite (Fe₃O₄).

Hematite is an iron oxide mineral. It is non-magnetic and has colour variations ranging from steel silver to reddish brown. Pure hematite mineral contains 69.9% iron. Historically, it has been the dominant iron ore mined in Australia since the early 1960s. Approximately 96% of Australia’s iron ore exports are high grade hematite, the majority of which has been mined from deposits in the Hamersley province of Western Australia (WA). The Brockman Iron Formation in Hamersley province is a significant example of high grade hematite iron ore deposits.

Magnetite is an iron oxide mineral generally black in colour and highly magnetic, the latter property aiding which helps in the beneficiation of magnetite ores.   Magnetite mineral contains 72.4% iron, which is higher than hematite. Despite this, the common presence of impurities in magnetite ores makes them lower grade and more costly to produce concentrates used in steel smelters. Magnetite mining is an emerging industry in Australia with large deposits in the Pilbara region (WA) being developed. The largest project is the $5.2 billion Sino Iron project being developed by the Chinese company Citic Pacific. To date, the other major magnetite development is the $2.6 billion Karara joint venture project owned by Gindalbie Metals and Chinese steel producer, Ansteel.

Mining and processing hematite and magnetite ores

High grade hematite ores are referred to as direct shipping ore (DSO) because they are mined and beneficiated using a relatively simple crushing and screening process before being exported for use in steel making. Australia’s hematite DSO from the Hamersley region (WA) averages from 56% to 62% iron. Magnetite ores require initial crushing and screening the same as hematite ores, but also includes a second stage of processing. This second stage relies on the magnetic properties of the ore and involves large scale magnetic separators being used to separate the magnetite and produce a concentrate.  Consequently, the types of magnetite mineralisation, including either coarse or fine grained magnetite, are important economically. Metallurgical tests on both coarse-grained and fine-grained magnetite ores (Accent Resources, 2009)² show that the course grained magnetite banded iron formation (BIF) (mass concentrate recovery is 45.9% at 69.2% iron) performed better with regard to mass recovery when compared to fine-grained magnetite (mass concentrate recovery is 29% at 69.6% iron). Size requirements also differ for both mineralisation types such that fine grained magnetite BIF 80% passing size require 45 microns, while coarse grained magnetite BIF 80% passing size require 75 microns, which results in less grinding energy.

Further processing involves the agglomeration³ and thermal treatment of the concentrate to produce pellets which can be used directly in blast furnaces or in direct reduction steel-making plants. The pellets contain 65% to 70% iron, being a higher iron grade than hematite DSOs currently being exported from the Hamersley region. Additionally, the magnetite pellets contain lower levels of impurities, particularly phosphorous, sulphur and aluminium when compared to hematite DSOs. These pellets are premium products which attract higher prices from steel makers, offsetting the higher costs of producing magnetite pellets.

Worldwide Production Trends

Hematite ores represent 60% of total world production of iron ores. The largest producers are Australia and Brazil. Magnetite ores account for 40% of iron ore production worldwide and are mined and processed extensively around the world. China has large resources of low iron grade magnetite ores (23 Giga tonees Gt of economic resource of iron ore with average grade approximately 30% Fe) and considerable experience in mining and concentrating these ores. In the USA, total economic resources are estimated to be 6.9Gt of ore with average grade of 30% Fe (USGS, 2011)⁴. Resources in the USA are mainly low grade taconite type ores (magnetite and iron silicate) from the Lake Superior districts which require beneficiation and pelletising prior to commercial use. Upgrading these ores through pelletising has increased over the years and by the mid 1980s accounted for more than 95% of USA production.

In recent years, a trend worldwide has been the gradual depletion of the highest grade hematite ores with iron grades of DSO declining and the levels of impurities generally increasing. The demand for premium quality steel in China and India continues to grow. An increasing number of steel mills are blending high quality magnetite pellets with premium grade hematite ores to increase the quality of steel products and improve productivity in their blast furnaces.

In previous years, Geoscience Australia has reported estimates of Australia's national resources of iron as tonnes of iron ore because these resources were dominantly hematite ores. However, as a result of on-going exploration and assessment of magnetite deposits, Australia has now identified substantial reserves and resources in both hematite and magnetite ores. Because of the high average grades (% Fe) of hematite ores when compared to the average grades for magnetite ores, it is necessary to report national resources in terms of 'contained Fe'. Accordingly, for 2010, Australia's national resources of iron are reported in two categories:

• Tonnes of iron ore, and
• Tonnes of contained Fe.

Iron ore: In 2010, Economic Demonstrated Resources (EDR) of iron ore increased by 23% to 34.5 gigatonnes (Gt) mainly because of increased resources for some deposits, including in the WA mines Balmoral Central, Marillana, Roy Hill, Robe River, Mount Whaleback, Karara , West Pilbara, Hamersley, Solomon, Mining Area C, Gabanintha and Jack Hills. Resource definition of existing deposits and the inclusion of new magnetite deposits have also contributed to the increase in EDR. Paramarginal Demonstrated Resources have increased from 0.3Gt to 0.7Gt Inferred resources increased by 65% to 47.8Gt because of large increases at Hamersley, Balmoral Central, Karara, Mining Area C, and Solomon mines. The inclusion of 19 new deposits also contributed to the high Inferred Resources for 2010. Western Australia has about 98% of Australia’s total Identified Resources of iron ore with the majority of the resources occurring in the Pilbara Region.

Contained Fe: As at December 2010, Australia's EDR was estimated to be 17Gt contained Fe, Paramarginal Resources were 0.4Gt contained Fe, and Inferred Resources 23.3Gt contained Fe.

Almost all of the 34.5Gt EDR is accessible except for 18 million tonnes (Mt) at Orebody 23 in the Newman District (WA) and 30% of the Windarling resource (WA). Both have been quarantined for environmental reasons. At current rates of mine production, accessible EDR for iron ores is sufficient for approximately 80 years.

The total Joint Ore Reserve Committee (JORC) Code Reserves of iron ore were estimated to be 13.6Gt representing 39% of accessible EDR. Contained iron is 7.1Gt or 42% of the EDR of contained Fe. At the current rate of mine production, JORC Code Reserves are sufficient for about 31 years.

A total of 19 new deposits, mostly occuring in WA, were added to Australia’s iron ore resource base during 2010. They are Cashmere Downs (Cashmere Iron), Magnetite Range (Accent Resources), Steeple Hill (Fairstar Resources), Extension (Iron Holdings), Mount Forrest (Mindax) Boundary (IOH), Buckland Hills, Fingers, Hawsons, Hercules (Iron Clad), Koodaideri South, Mount Dove, Mount Padbury, North Star, Warrawanda, Yerecoin (Giralia Resources), Weld Range, Spearhole (Dynasty Metals) and Bilberatha Hill (Venus Metals Ltd).

Australian Bureau of Statistics (ABS) data indicates that exploration expenditure for iron ore in 2010 totalled $553.1 million, a 6% increase on the $521.2 million spent in 2009. About $502.4 million, or approximately 90%, was spent in WA and accounted for 22% of the total mineral exploration expenditure of around $2469 million in Australia in 2010.

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) reported that Australia’s iron ore production in 2010 was 433.5Mt (393.9Mt in 2009) with 97% produced in WA. Exports in 2010 totalled 401.9Mt (362.4Mt in 2009) with a value of $47 166 million.  In 2010 ABARES predicted that Australia’s iron ore production would increase to 619Mt by 2016 and exports are projected to rise to 582Mt. ABARES states that the projected increases are in response to high demand from developing countries including China, which ABARES expects will increase its steel consumption by 8% per year to 995Mt by 2016, and India, which it expects to increase demand for steel at an average of 14% per year to 75Mt over the same period. ABARES also expects Brazil will increase its steel consumption by 5% per year as a result of new infrastructure developments for Federation International Football Association (FIFA) in 2014 and the Olympic games in 2016.

In 2010, Australia had about 18% of world EDR of iron ore and was ranked second after China (37%). In terms of contained iron, Australia has about 19% of the world’s EDR and is ranked first with Brazil second (18%). Australia produces around 18% of the world’s iron ore and is ranked second behind China (37%).

Western Australia

Rio Tinto Iron Ore:  The company is undertaking a US$200 million expansion project for the Cape Lambert port to increase its capacity to 330Mt per year in support of its Pilbara operations. The project will be carried out in 4 stages with the final stage in 2016. The company’s new Mesa A mine is ramping up to a capacity production rate of 20 million tonnes per annum (Mtpa). Rio Tinto also has significant iron ore expansion projects in the Pilbara region, including the newly opened Brockman 4 and Western Turner Syncline mines as well as development projects such as the $1.2 billion Hope Downs 4 iron ore open cut mine, 30km north of Newman. The target production rate for Hope Downs 4 is 15Mtpa with an anticipated production start in 2013. Its development is based on Proven Reserves of 73Mt at 63% iron, and Probable Reserves of 64Mt at 63.2% Fe, utilising a 59.5% Fe cut-off grade. Rio Tinto will also commit $425 million to fully cover the capital costs of the rail, rolling stock and power infrastructure for this project. The Brockman 4 mine expansion project includes an increase output from 22Mtpa to 40Mtpa.

BHP Billiton:  The company announced a capital investment of $US6.6 billion to increase infrastructure facilities at Port Hedland and develop a new mine at Jimblebar in early 2014 which will have a capacity of more than 220Mtpa of iron ore. The project joint venture partners, including Itochu Minerals and Energy of Australia, Mitsui-Itochu Iron and Mitsui Iron Ore Corporation, will contribute an additional $US800 million towards the Jimblebar project.

BHP has also reported that its RGP5 (Rapid Growth Project 5) was 90% completed. This development will provide an additional 50Mtpa capacity and is expected to be commissioned in late 2011.

Fortescue Metals Group (FMG): The company reported 10 000Mt of total resources for its projects in the Pilbara. The additional resources from its numerous deposits, including Firetail (estimated 50Mt Indicated Resource) and Serenity (an increase of 100Mt in Inferred Resource), have contributed to the increased resources. The Mount MacLeod initial Inferred Resource of 121Mt has also contributed to the overall total resource, as well as1000Mt of initial Inferred Resource from the new Nyidinghu project 35km south of the FMG Cloudbreak operation and 624Mt of Inferred Resources at an average grade of 58.7% Fe from Eliwana and Flying Fish deposits in Western Hub.

Mount Gibson Iron Ltd: Development of the Extention Hill hematite DSO project commenced in December 2010 with mine production planned to increase to 3Mtpa. Mount Gibson also announced that the company had entered into an agreement with Glencore International to purchase 48% of  life of mine production (1.44Mtpa) based on production of 3Mtpa.

Murchison Metals Ltd: The scoping study for Rocklea project indicated a high possibility for an economically robust project capable of supporting a 10Mtpa production rate. The discovery of the new Brindal deposit at the Jack Hills project has increased Jack Hills mineral resource to 3200Mt. The previously announced Stage 2 Jack Hills Expansion Project with a projection of up to 25Mtpa production of DSO and beneficiated feed ore (BFO) is still progressing. Murchison Metals consider that there is potential to increase the production by up to 30Mtpa, subject to installation of other infrastructure.

Sinosteel Midwest Corporation: The Koolanooka/Blue Hills DSO project commenced operations in April 2010 at a production rate of about 1.5Mtpa over 5 years. Sinosteel is planning a 15Mtpa DSO operation at Weld Range.

Atlas Iron Ltd:  An increase of 50% in DSO Reserves to 79.3Mt at 57.8% Fe is estimated for the company’s North Pilbara projects, which comprise Wodgina and Pardoo. Atlas is currently exporting iron ore at a rate of 6Mtpa and states that it aims to increase its export to 12Mtpa by December 2012 once mining at Mount Dove, Abydos and Mount Webber commence. The discovery of the new Hercules deposit near Wodgina has the potential to increase the mine life in the north Pilbara.

CITIC Pacific Mining:  The first production and export of iron ore concentrate from the $5.2 billion Sino Iron Project is proposed for mid 2012. The company plans to export 27.6Mtpa of magnetite concentrates and pellets.  The first (one of four) large in-pit crushing system was installed and briefly operated in July 2011. Infrastructure includes a 450 megawatt gas fired power station, a desalination plant and a port at Cape Preston.  Some of the other infrastructure, such as one of the in-pit crushing systems, was installed in July 2011. Each of these crushing systems has the capacity to crush 4250 tonnes of magnetite ore per hour.

Gindalbie Metals Ltd: Gindalbie Metals announced its initial shipment of hematite lump ore from the Karara Iron project in the mid-west region of WA in late March 2011. The stage 1 target production of 2Mtpa is expected to increase after on site processing infrastructure is completed. Also, approval was initiated on a scoping study for the expansion of the Karara project to increase production from 10Mt to16Mtpa.

BC Iron Ltd: Mining at the 3Mtpa Nullagine project commenced in November 2010 with iron ore export shipments commencing in February 2011. The company aims to increase the production rate to 5Mtpa by June 2012 and, as a result, increase the tonnage export rate to approximately 3.5Mt.

Golden West Resources Ltd: The company has announced its initial iron ore reserve for the C3, C4, Joyners Find and Bowerbird deposits of 69.2Mt at 60.3% Fe. Golden West Resources says that the reserve creates a potential mine life of 10 years at a production rate of approximately 7Mtpa. It was proposed that these deposits be mined in stages with initial production of 1Mt for stage I before going to a full scale production of 10Mtpa in stage III.

Ferrowest Ltd: The planned Yogi Mine at Yalgoo Iron project will produce merchant pig iron and mining of DSO from the Yogi and Western Hematite deposits. The company aims to commence production in 2014. A recent investment of $20M by TFA International Pty Ltd will accelerate the development process of the Yalgoo Iron Project, including a definitive feasibility study.  A component of the definitive feasibility will be to increase the target production rate of magnetite concentrate from 1.5Mtpa to 4.5Mtpa.

Iron Ore Holdings Ltd (IOH): The pre-feasibility study conducted on Iron Valley has confirmed technical viability for a 4 stage mine development. Stage 1 and 2 will deliver up to 15Mtpa for six years. It is noted from the 3 August 2011 report that the pre-feasibility resource figure was based on the total resources of 480Mt.  Another development for IOH is the significant increase of Buckland Hills Inferred Resource from the Bungaroo South deposit. A concept study was also conducted for Bungaroo which projected a 15Mtpa production rate for 15 years mine life.

Brockman Resources: The definitive feasibility study conducted for Marillana has confirmed the project capability to produce approximately 17Mt of dry iron ore at an average grade of 60.5% to 61.5% Fe per year over a 25 years of mine life. The projected annual production will increase to 21Mt for some years over the life of the mine. The Marillana Detrital total Ore Reserves containing hematite was estimated to be approximately 1Mt at 42.4% Fe. The other highlight for Brockman Resources was the significant drilling results for their Duck Creek and West Hamersley prospects in West Pilbara. For Duck Creek, significant DSO grade mineralisation was intersected at surface or shallow depths, including 20m at 56.6% Fe from 1m and 17m intervals at 56.8% Fe from surface. Likewise, at West Hamersley, a 13m interval at 55.6% Fe (62.9% CaFe) from 7m and 9m at 58.8% Fe (60.5% CaFe) from surface was also recorded.

Mindax Ltd: The Mount Forrest Iron Project is progressing to the mining phase and is aiming for production by 2013 for its DSO resource, followed by its magnetite resource production in 2015. The company has announced total Indicated and Inferred DSO resources of 19Mt. Its magnetite resource is 1430Mt at 31.5% Fe.

Mineral Resources Ltd: The $120 million Stage 1 Yilgarn Project commenced mining in July 2011 with a target of having the initial ore delivered to Fremantle Port in the last quarter of 2011. Mineral Resources Ltd has previously announced its intension to increase the production rate target to 10Mt per year.

Moly Mines Ltd: The Spinifex Ridge project, 50km northeast of Marble Bar, commenced mining in late 2010 with an annual production rate of 1Mtpa DSO. An initial shipment of 54 500 tonnes of iron ore fines to China occurred in December 2010 with plans to increase shipment sizes as mine production rates continue to increase. The projected total iron ore shipments for the calendar year is approximately 900 000 wet tonnes.

FerrAus Ltd: The company’s Davidson project has increased its Indicated Resource to 50Mt through the upgrade of Dugite and Tiger Inferred Resources, giving rise to overall total resources for its Pilbara Project of 347Mt which includes 66.2Mt of the Inferred Resources.

Legacy Iron Ore Limited: The company announced that its maiden Inferred Resource was 617Mt at 32.1% Fe, following its first drilling program and phase II is underway.

Pluton Resources Ltd: The company has numerous projects in Australia but current development is centred on its Irvine Island project in the Kimberley region. A pre-feasibility study for Irvine Island was completed for 40Mt production in stage 1 for a mine life of 11 years. This projection was based on the Probable Reserves of 143Mt at 28% Fe. The pre-feasibility studies also indicated that production would commence in 2013/14, subject to approval by relevant government agencies.

Hemisphere Resources Ltd: Hemisphere has reported its initial Indicated Resource of 4.3Mt at 55.8% Fe for the Yandicoogina South Chanel Iron deposit, 80km north of Newman, in the Pilbara region. Mining studies for this project have commenced and aim for initial production early 2013.

Macarthur Minerals Ltd: The company has progressed the development of its hematite DSO deposit from its Lake Giles project in the Yilgarn region. It is proposed to commence production at a rate of 2Mtpa in either late 2012 to early 2013. The project start-up is subject to approval from relevant government agencies.

Winmar Resources Ltd: There was a 70% increase in Inferred Resources from its June 2010 estimate to 241.6Mt at 54.3% Fe for the Winmar deposit at the company’s Hamersley Iron project. An additional highlight was the return of anomalous drilling results (e.g. 28m at 50.6% Fe) outside the Winmar deposit, which potentially increases the exploration target to between 350Mt and 400Mt.

Aquila Resources: Definitive feasibility study results have indicated the viability of a more than $5 billion project for the West Pilbara Iron project. The project aims to produce 30Mtpa of iron ore over 15 years with target production start up in late 2013 and an initial shipment in mid 2014. Total estimated resource as of the September quarter was approximately 1220Mt. The proposed commencement of mine construction is during the March quarter in 2012 with a 15 years mine life.

Fairstar Resources Ltd: The company stated in its quarterly reports for March and June 2011that it is fast tracking the development of the Steeple Hill Iron Project (SHIP), and aims to start production of its alluvial hematite DSO deposit in 2011. In the 2011June quarter the estimated Indicated Resource for SHIP was 136Mt at 58% Fe.

Flinders Mines Ltd: A definitive study is to commence in 2012 for the company’s $640 million Pilbara project. This study will define the project objective for an initial start up production rate of 15Mtpa in 2014. The company has announced that, the Pilbara Iron project estimated resource is 747.6Mt inclusive of 272.5Mt at 56.2% Fe Indicated Resources and 475.1Mt Inferred Resources at 54.9% Fe.

Zenith Minerals Ltd:  The company has announced initial Inferred Resources of 392.9Mt at 29.5% Fe at its Mount Alexander Magnetite project. Positive scoping study results indicate a production rate of around 8Mtpa capacity, producing high grade iron concentrate at 68.6% Fe with a 20 years mine life.

Jupiter Mines Ltd: Feasibility studies for Jupiter Mines' $1.6 billion magnetite project at Mount Ida in Central Yilgarn began in mid 2011. The study was based on estimated Inferred Resource of 530Mt at 31.9% Fe. The study outcome indicates a production rate capacity of magnetite ore of 10Mtpa of magnetite concentrate grading at 68% Fe from an open pit mine extracting 25Mtpa for a 20 year mine life. Another development is a feasibility study for the company’s Mount Mason DSO project. That study is based on the estimated Inferred Resource of 5.75Mt at an average grade of 59.9% Fe producing hematite DSO of 1.5Mtpa with commissioning of the project in 2013.

Altura Mining Ltd:  The company's Mount Webber Iron joint venture project with Atlas Iron Ltd in the Pilbara has reported an increase to its reserve of 25.2Mt DSO grading at an average of 57.5% Fe for its Ibanez and Gibson prospects.  The project is planned for development with initial production rate of 3Mtpa in 2013.

Buxton Resources Ltd:  The company has announced a significant iron discovery at its Zanthus Project, 230km east of Kalgoorlie. The company also reported that drilling confirmed a magnetic anomaly defining a potentially large magnetite deposit which included up to 60m wide with a depth between 20m and 50m grading from 32.7% to 33.9% Fe.

Apollo Minerals Ltd: Significant intervals were intersected at Mount Oscar Iron Ore project, including a 101m at 33.6% Fe, 112m at 33.9% Fe and 66m at 31.2% Fe. According to the company, the metallurgical test results from this deposit indicates high potential for producing magnetite concentrate grading at more than 60% Fe with less than 8% Al₂O₃ and SiO₂.

South Australia

OneSteel Ltd: The total resource for the Middleback Range Project is 117Mt at 59% Fe for hematite, including reserves of 46.2Mt at 60.9% Fe, and 238.9Mt at 38.5% Fe for magnetite, which includes reserves of 83.4Mt at 40.9% Fe). Onesteel Iron Chieftain Project hematite resource contains approximately 18.2Mt at an average grade of 58% Fe, inclusive of Probable and Proven Reserves of 7.7Mt at 60.5% Fe. Information on individual deposits and their development was not available at the time this report was written. An additional highlight for this period was acquisition of the Peculiar Knob Project from Western Plains Resources Ltd (WPG). The project has a proposed production rate of 3Mtpa for an expected initial mine life of 5 years.

IMX Resources: The company reported an increase of 139% to 8.37Mt at 46.7% Fe and 0.03% Cu for a combined Indicated and Inferred resources for Cairn Hill phase II. A project planning and optimisation study for Phase II of the Cairn Hill project is well underway with the target commencement of phase II production in early 2012. Cairn Hill Magnetite-Copper-Gold project made a first ore shipment to China of about 62 053 tonnes in December 2010.
  
Centrex Metals Ltd:  The company has announced that approval has been received for its Wilgerup Hematite mine development project on Eyre Peninsula. The company has reported that the proposed Wilgerup Mine is anticipated to produce DSO hematite of between 1Mtpa and 1.5Mtpa for 7 years. The commissioning of the mine was deferred to coincide with the completion of the company's joint venture Spencer Deep Water Port project, which is expected to be completed in 2014.

Ironclad Mining Ltd: The $26 million Stage 1 Wilcherry Hill Mine Project aims to commencing mining in late 2011 and produce 1Mtpa of DSO initially, progressing to 2Mtpa in the 2nd year.  The company has reported that  it has a total combined resource of 69.3Mt, including Indicated Resource of 48.2Mt at 25.5% Fe.

Royal Resources Ltd: The company has announced increased resource of 568.6Mt at 25.6% Fe at its Razorback Ridge magnetite project. This resource estimate includes Indicated Resource of 437.1Mt at 26% Fe.

Tasmania

Grange Resources Ltd: A pre-feasibility study at the company’s Southdown Project indicates a development cost of $2.57 billion and expected production of 10Mtpa of magnetite concentrates from 2014. The projected anticipated mine life is 19 years with the potential to extend to 40 years.

Shree Minerals: The company reported that the Nelson Bay River (NBR) Project feasibility study is progressing on schedule. An upgrade of the resources for Nelson Bay River has confirmed approximately 12.6Mt at an average grade of 36.1% Fe with Indicated Resource of 1.8Mt at 38.6% Fe and Inferred Resource of 10.8 at 35.6%. The feasibility study proposed mining the DSO deposit as an open pit mine initially with a target production rate of 400 000 tonnes per anum for an initial mine life of 10 years.

Northern Territory

Sherwin Iron: At its Roper River project, the company has announced a significant resource increase of 58% to 168Mt at 44.7% Fe which includes 112.4Mt of Inferred Resource and 55.7Mt of Indicated Resource.

Western Desert Resources: A notice of Intent for the Roper Bar DSO phase I project was lodged by the company for mining and infrastructure development, including a slurry pipe line for transporting DSO and ore concentrate to its proposed export facilities on Maria Island. An assessment of the project has projected a 1.5Mtpa production rate in 2012, increasing to 2Mtpa by 2013. The company reports that the current JORC Code resource at Roper Bar is 310Mt, including 14.5Mt high grade DSO.

TNG Limited: The scoping study for the company’s Mount Peak ferro-vanadium project indicates development costs of more than $43M for stage I with a projected initial production rate of 2Mtpa over 23 years of mine life. The study baseline resource was 139Mt of Inferred Resource. The predicted total production over the mine life is approximately 107Mt, yielding 27 182kt (kilotonne) Fe and 349kt V₂O₅.

Queensland

Xstrata Copper:  An initial shipment of iron ore concentrate from the Ernest Henry Mining  (EHM) magnetite plant occurred in June 2011. The magnetite plant is part of the $589 million Ernest Henry copper gold underground mine project. The EHM mine life has been extended until 2024 as the result of plans to construct the EHM underground mine and its magnetite plant. Initial production is projected to be 1.2Mtpa of magnetite concentrate. The mine has a total Proven and Probable magnetite raw estimated resource of 17Mt.

Kimberley Metals Ltd: The company’s Constance Range deposit is part of the South Nicholson Basin iron formation in northwest Queensland and has Inferred Resources of approximately 236.37Mt, excluding the nearby Boodjamulla (Lawn Hill) National Park  which contains resource totalling 59.59Mt. Further development of the company’s Constance Range deposit will be based on the result of future scoping studies planned by the company.

Cerro Resources: The company has announced an initial Inferred Resource of 25.4Mt at 36.6% Fe for its Mount Philp Hematite Iron Project in northeast Queensland.

Iron and Steel

Operating and proposed Direct Reduced Iron (DRI) and steelworks in Australia include:

Bluescope Steel Ltd: Steel production at Port Kembla (NSW). The company has announced a shutdown of its No. 6 blast furnace at Port Kembla and closure of the Western Port hot strip mill in Victoria (Vic). The company also announced its annual steel production would be reduced to 2.6Mt.

OneSteel Ltd: Steel production at Whyalla (SA), Rooty Hill and Mayfield (NSW) and Laverton North (Vic).  The company has announced a total raw steel production of 2.15Mt for 2010, a 6% increase from the previous year. This is in spite of production at its Whyalla Steet Mill dropping to to 910 000 tonnes from its annual rate of 1.15Mt because of a break down in its blast furnace. 

Ferrowest Ltd: The company has reported that its Yalgoo (WA) project is planning to produce 1Mt a year of merchant pig iron at 96% Fe from 2014 using the Midrex Technologies ITmk3 process. The magnetite concentrate used to produce the merchant pig iron in the form of nuggets will be source from the company's  Yogi magnetite deposit about 14km east of Yalgoo.

Boulder Steel Ltd: The $4 billion Gladstone Steel Project (Qld) is planned to use blast furnace/basic oxygen furnace technology to produce 5Mtpa of steel slabs and billets for export to Asia.

1. Geoscience Australia wishes to acknowledge the contribution by Western Australia Geological Survey, Primary Industries and Regions South Australia (PIRSA), the Geological Survey of Queensland and Aden McKay for the provision of iron ore data and other relevant information
2. Accent Resources Ltd, Report (presentation) on annual general meeting 2009.
3. Agglomeration is the process where magnetite grains are aggregated into pellets using a chemical binding reagent. Pellets are produced in a pelletising plant.
4. USGS, 2011. Mineral Commodity Summaries 2011. United States Geological Survey.