JSB Market Research: Iron Ore Mining in Australia to 2020

Iron Ore Mining in Australia to 2020 

On 6 th May 2014 

Synopsis 

The Iron Ore Mining in Australia to 2020 report provides historical and forecast data on iron ore 

production (and also by form), reserves, consumption by end use and trade to 2020. The trade 

section provides information on export volumes to destination countries, as well as imports. 

The report also includes drivers and restraints affecting the industry, profiles of major iron ore 

mining companies, information on the major active, exploration and development projects and 

regulations governing the industry. The report provides a comprehensive coverage of Australias 

iron ore mining industry. 

Summary 

The iron ore production in 2013 was 609.2 million tons (Mt), a figure that is projected to reach 

692.8Mt by 2015 and 812.4Mt by 2020. Iron ore in the country is abundantly found in Western 

Australia, which accounted for 97% of countrys total iron ore production in 2013. Its main 

deposits are situated in Hamersley province, in the states Pilbara region. The economically 

viable resources are limited to regions in Western Australia with economic demonstrated 

resource (EDR) of 91%, and total iron ore resources of 86%, followed by South Australia with 

EDR of 8% and total iron ore resources of 10%. Other deposits are found in Tasmania, Northern 

Territory and New South Wales. 

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Scope 

The report contains an overview of the Australian iron ore mining industry together with the 

key growth factors and restraints affecting the countrys iron ore mining industry. Further, it 

provides detailed information about production, prices, production by form and mining 

methods, reserves, reserves by grade and regions, major producing mines, competitive 

landscape, major active, exploration and development projects, consumption, consumption by 

end-use and trade. Also included is the countrys fiscal regime, which includes governing bodies 

and relevant laws, rights and obligations of the mining companies, as well as key fiscal terms. 

Reasons To Buy 

Gain an understanding of the Australian iron ore mining industry, the relevant drivers and 

restraining factors, historical and forecast production, consumption and trade data and the 

fiscal regime. 

Key Highlights 

The iron ore production in 2013 was 609.2 million tons (Mt), a figure that is projected to reach 

692.8Mt by 2015 and 812.4Mt by 2020. Iron ore in the country is abundantly found in Western 

Australia, which accounted for 97% of country’s total iron ore production in 2013. 

In the short term 20142016, with rise in demand and projected growth in infrastructure, a 

number of iron ore projects are expected to commence. These include the Roy Hill project 

owned by Hancock Prospecting Pty Ltd and POSCO; Southdown Project owned by Grange 

Resources Limited, Sojitz Corporation and Kobe Steel Ltd. 

The Australian governments draft legislation to repel the controversial mineral resource rent 

tax (MRRT) tax by July 2014 is expected to encourage mining companies. The previous 

government introduced the MRRT, essentially an additional tax on the profits from mining 

projects, but, it was estimated that the tax would generate revenues of just AUD7.2 billion 

(US$7.3 billion) by 2017. 


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SWOT Analysis 

Table of Content 

1 Summary 

2 Iron Ore Mining in Australia 6 

2.1 Mining Industry Overview 6 

2.2 Iron Ore Mining in Australia Upcoming Projects 6 

2.3 Iron Ore Mining in Australia Drivers 6 

2.3.1 Abolishing MRRT tax 6 

2.3.2 Significant Iron Ore Investments in Western Australia 7 

2.3.3 Extensive Iron Ore Reserves 7 

2.3.4 Proximity to Key Markets with Development of Rail Tracks and Ports 7 

2.4 Iron Ore Mining in Australia Restraints 7 

2.4.1 Infrastructure Constraints 7 

2.4.2 Delay in Operations of Major Iron Ore Projects 9 

2.4.3 Declining Iron Ore Prices 9 


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3 Iron Ore Mining in Australia Production, Consumption, Reserves and Trade 10 

3.1 Reserves by Grade and Geographic Region 10 

3.1.1 Western Australia 12 

3.1.2 South Australia 12 

3.2 Historical and Forecast Production 13 

3.3 Total Production, by Form 16 

3.3.1 Total Production, by Form fines 16 

3.3.2 Total Production, by Form lumps 16 

3.3.3 Total Production, by Form pellets 16 

3.3.4 Total Production, by Region/State/Basin 19 

3.4 Iron Ore Prices 19 

3.5 Competitive Landscape 21 

3.5.1 Rio Tinto Iron Ore, Business Description 21 

3.5.2 BHP Billiton Ltd, Business Description 21 

3.5.3 Fortescue Metals Group Ltd, Business Description 22 

3.5.4 Hancock Prospecting Pty Limited, Business Description 22 

3.5.5 Brockman Mining Australia Pty Ltd, Business Description 22 

3.5.6 Atlas Iron Ltd, Business Description 23 

3.5.7 CITIC Pacific Limited, Business Description 24 

3.6 Total Production by Major Mines 25 


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3.7 Total Production by Mining Method 25 

3.8 Major Exploration and Development Projects 25 

3.9 Iron Ore Consumption and Trade 28 

3.9.1 Total Consumption by End Use, Steel 28 

3.10 Domestic Consumption vs. Exports 29 

3.10.1 Export to Destination Countries 31 

3.10.2 Imports by source 32 

3.10.3 Iron Ore Quality Analysis 32 

3.11 Demand Drivers 34 

3.11.1 Demand vs. Final Uses 34 

4 Fiscal Regime 35 

4.1 Australia, Governing bodies 35 

4.1.1 National Level 35 

4.1.2 State/Territory Involvement 36 

4.2 Australia, Governing laws 37 

4.2.1 Offshore Legislation 37 

4.2.2 Onshore legislation 38 

4.3 Australia, Mining rights and obligations 39 

4.3.1 Rights 39 

4.3.2 Obligations 39 


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4.4 Australia, Key Fiscal Terms 39 

4.4.1 Royalty 39 

4.5 Australia, Tax Structure 41 

4.5.1 Minerals Resource Rent Tax (MRRT) 41 

4.5.2 Corporate Income Tax 42 

4.5.3 Capital Gain 42 

4.5.4 Deduction 42 

4.5.5 Depreciation 42 

4.5.6 Withholding Tax 43 

4.5.7 Loss Carry Forward 43 

4.5.8 Goods and Services Tax (GST) 43 

5 Appendix 44 

5.1 What is this Report About? 44 

5.2 Methodology 44 

5.3 Secondary Research 44 

5.4 Primary Research 44 

5.5 Contact Timetric 45 

5.6 About Timetric 45 

5.7 Timetrics Services 45 

5.8 Disclaimer 47 


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List of Tables 

Table 1: Iron Ore Mining in Australia Pilbara Infrastructure Summary 

Table 2: Iron Ore Mining in Australia Port Hedland Allocations 9 

Table 3: Iron Ore Mining in Australia Total Production (Million Tons), 20002020 15 

Table 4: Iron Ore Mining in Australia Total Production by Form (Fines, Lumps and Pellets) 

(Million Tons) 20002020 18 

Table 5: Iron Ore Mining in Australia Major Active Mines, 2013 25 

Table 6: Iron Ore Mining in Australia Major Exploration Projects, 2013 26 

Table 7: Iron Ore Mining in Australia Major Development Projects, 2013 27 

Table 8: Iron Ore Mining in Australia Total Consumption by Type (Million Tons), 20002020 29 

Table 9: Iron Ore Mining in Australia Total Exports (Million Tons) 20002020 31 

Table 10: Iron Ore Mining in Australia Exports by Region and Destination Country (Million Tons), 

2013 32 

Table 11: Iron Ore Mining in Australia Chemistry of Iron Ore by Country 33 

Table 12: Iron Ore Mining in Australia Ad Valorem Royalty Rates (%), 2013 40 

Table 13: Iron Ore Mining in Australia Depreciation Rates (%), 2013 43 

List of Figures 


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Figure 1: Location of Iron Ore Deposits in Australia 11 

Figure 2: Iron Ore Reserves in Western Australia 12 

Figure 3: Major Iron Ore Deposits in South Australia 13 

Figure 4: Iron Ore Mining in Australia, Total Production (Million Tons), 20002020 14 

Figure 5: Iron Ore Mining in Australia Total Production by Form (Fines, Lumps and Pellets) 

(Million Tons), 20002020 

Figure 6: World Iron Ore Contract Prices, 20112018 20 

Figure 7: Iron Ore Mining in Australia, Total Consumption vs Consumption by Steel (Million 

Tons), 20002020 28 

Figure 8: Iron Ore Mining in Australia, Total Exports (Million Tons), 20002020 30 

Figure 9: Iron Ore Mining in Australia, Export to Destination Countries (%), 2013 32 

Figure 10: Iron Ore Mining in Australia , Chinese Imports (Tons), 20012013 34 

Related reports: 

Mexico's Mining Fiscal Regime: H1 2014 

Canada’s Mining Fiscal Regime: H1 2014 


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JSB Market Research: Iron Ore Mining in Australia to 2020

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