Demand for iron ore

Australia’s miners have made a huge contribution to the economy over the last decade. And we have built a reputation as the most productive and competitive iron ore producer in the world. If our biggest iron ore mines suspended or capped production, other suppliers around the world would fill the void. Australia would lose jobs, market share, taxes and royalties.

As economies in countries like China and India keep growing and developing in support of their large populations, there will continue to be a strong and constant demand for steel for building infrastructure and communities. That means there is also a constant demand for our high-quality iron ore.

And while iron ore prices will always fluctuate, its importance to Australia, as a raw material and export commodity, will continue for many decades to come. China is predicted to be producing a billion tonnes or more of steel by 2030. India and the rest of Asia is also continuing to urbanise and industrialise. This will ensure strong demand for steel, and thus iron ore, for many decades to come.

Industry Exports
Source: Bureau of Resources and Energy Economics

Australia’s iron ore reserves

Australia is the number one seaborne supplier of iron ore to global iron and steel markets. Brazil is second. Our global share means that we are an important player in the seaborne trade of iron ore, but we must maintain our reputation as a competitive and low cost producer of the commodity in order to maintain our market share and the economic benefits it generates for the Australian economy. Australia is well placed to continue producing iron ore to help meet global demand. The Australia Government’s Australian Atlas of Mineral Resources, Mines and Processing Centres says with proven iron ore reserves (those already found, confirmed and drill tested) can continue to be mined for many many decades to come.[12]