Rising Asian Iron Ore Demand Drives $31 Billion in Mining Projects in Australia

Researched by Industrial Info Resources (Sugar Land, Texas)--The price of iron ore has been strong since December 2020, driven by high demand in China and disrupted supply in Brazil. Australia's iron ore export volumes are forecast to increase from 893 million metric tons in 2020-2021 to reach almost 1,100 million metric tons in 2025-2026.

Industrial Info is tracking more than $31 billion worth of iron ore projects in Australia. Click here for related projects.

To fulfill the current iron ore market demand, new mines expected to come online include Rio Tinto's (NYSE:RIO) (London, England) Mesa B, C & H in mid-2021. The new output from these mines will be offset by the closure of Mesa J and A in the same area.

BHP Group (NYSE:BHP) (Melbourne, Australia) is expected to bring its South Flank iron ore mine to full production (approximately 80 million metric tons per year) in 2021 to replace its Yandi mine, which has come to the end of its lifespan. Fortescue Metal Group's (Perth, Western Australia) newly developed Eliwana project is ramping up with output expected to reach almost 30 million metric tons per year. Other new iron ore-related projects in planning such as Magnetite Mines Limited's (Adelaide, South Australia) Razorback project, Strike Resources' (Perth) Paulsens East project and BBI Group's (West Perth) Balla project.

See graphs below showing Australia's export volumes and values, and its export destinations.



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