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Released May 25, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--A recovering steel market is driving up demand for iron ore feedstock at steel mills, especially in China. Global iron ore mine production was about 2.4 billion tons in 2020, according to the U.S. Geological Survey (USGS), which is down slightly from 2019, mainly due to a pandemic-related supply-and-demand slowdown. However, demand has improved, starting in the second half of 2020 and continuing in 2021. Iron ore prices reached record highs of greater than $220 per tonne this month. Brisk demand, coupled with supply disruptions, have driven up prices this year.
Production is dominated by Australia, Brazil, China and India, accounting for 78% of the global iron ore production.
Iron ore miners are developing $117 billion worth of projects worldwide. About 54% of that value is for grassroot mine construction. The remaining projects are for in-plant capital spending, such as mine expansions, or pit or underground mine additions. Leading iron ore-mining firms Rio Tinto (NYSE:RIO) (London, England) and Vale S.A. (NYSE:VALE) (Rio de Janeiro, Brazil) each have more than $5 billion worth of iron ore projects in the works.
Click on the image at right for a chart detailing the distribution of iron ore projects, by country.
Currently, there are $20.5 billion worth of projects under construction, with the remaining projects in the planning and engineering stages. The projects under construction will bring online more than 405 million tons per year of iron ore-mining capacity by 2025. Subscribers to Industrial Info's Metals & Minerals Global Market Intelligence (GMI) Project Database can click here for a list of projects under construction.
A good portion of the new capacity coming online is replacement capacity for depleting mines. Such is the case for the BHP Group's (Melbourne, Australia) $3.6 billion South Flank iron ore mine in Western Australia, which was commissioned last week. The 80 million-ton-per-year mine is part of the largest iron ore hub in the world. Known as the Western Australian Iron Ore Hub, it includes four processing plants, five mines, more than 1,000 kilometers of rail infrastructure and a port terminal. The project will replace the nearby Yandi mine, which nearly is at the end of its mine life.
Australia is the top country for iron ore project development with 166 projects totaling $33 billion, followed by Brazil with $20 billion in development, China with $13.6 billion, Canada with $7.3 billion, India with $7.2 billion, and Iran with $4.6 billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Production is dominated by Australia, Brazil, China and India, accounting for 78% of the global iron ore production.
Iron ore miners are developing $117 billion worth of projects worldwide. About 54% of that value is for grassroot mine construction. The remaining projects are for in-plant capital spending, such as mine expansions, or pit or underground mine additions. Leading iron ore-mining firms Rio Tinto (NYSE:RIO) (London, England) and Vale S.A. (NYSE:VALE) (Rio de Janeiro, Brazil) each have more than $5 billion worth of iron ore projects in the works.
Currently, there are $20.5 billion worth of projects under construction, with the remaining projects in the planning and engineering stages. The projects under construction will bring online more than 405 million tons per year of iron ore-mining capacity by 2025. Subscribers to Industrial Info's Metals & Minerals Global Market Intelligence (GMI) Project Database can click here for a list of projects under construction.
A good portion of the new capacity coming online is replacement capacity for depleting mines. Such is the case for the BHP Group's (Melbourne, Australia) $3.6 billion South Flank iron ore mine in Western Australia, which was commissioned last week. The 80 million-ton-per-year mine is part of the largest iron ore hub in the world. Known as the Western Australian Iron Ore Hub, it includes four processing plants, five mines, more than 1,000 kilometers of rail infrastructure and a port terminal. The project will replace the nearby Yandi mine, which nearly is at the end of its mine life.
Australia is the top country for iron ore project development with 166 projects totaling $33 billion, followed by Brazil with $20 billion in development, China with $13.6 billion, Canada with $7.3 billion, India with $7.2 billion, and Iran with $4.6 billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
