Iron Ore Mining in Australia to 2020

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. Its main deposits are situated in Hamersley province, in the state’s 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.

Scope

The report contains an overview of the Australian iron ore mining industry together with the key growth factors and restraints affecting the country’s 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 country's fiscal regime, which includes governing bodies and relevant laws, rights and obligations of the mining companies, as well as key fiscal terms.

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 2014–2016, 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 government’s 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.

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.

Companies mentioned

Rio Tinto Iron Ore, BHP Billiton Limited, Fortescue Metals Group Limited, Hancock Prospecting Pty Limited, Brockman Mining Australia Pty Ltd, Atlas Iron Ltd, CITIC Pacific Limited

Table of Contents

1 Executive Summary 1

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

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

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

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 GlobalData 45

5.6 About GlobalData 45

5.7 GlobalData’s Services 45

5.8 Disclaimer 47

List of Tables

Table 1: Iron Ore Mining in Australia – Pilbara Infrastructure Summary 8

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

Table 3: Iron Ore Mining in Australia – Total Production (Million Tons), 2000–2020 15

Table 4: Iron Ore Mining in Australia – Total Production by Form (Fines, Lumps and Pellets) (Million Tons) 2000–2020 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), 2000–2020 29

Table 9: Iron Ore Mining in Australia – Total Exports (Million Tons) 2000–2020 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

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), 2000–2020 14

Figure 5: Iron Ore Mining in Australia – Total Production by Form (Fines, Lumps and Pellets) (Million Tons), 2000–2020 17

Figure 6: World Iron Ore Contract Prices, 2011–2018 20

Figure 7: Iron Ore Mining in Australia, Total Consumption vs Consumption by Steel (Million Tons), 2000–2020 28

Figure 8: Iron Ore Mining in Australia, Total Exports (Million Tons), 2000–2020 30

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

Figure 10: Iron Ore Mining in Australia , Chinese Imports (Tons), 2001–2013 34

    Pricing

Discounts available for multiple purchases.

reportstore@globaldata.com
+44 20 7947 2745

Join our mailing list

Saved reports