Professional Documents
Culture Documents
RESEARCH
REPORT
No. 1.10
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Prepared by:
Department of Civil Engineering, Monash University
Institute for Sustainable Futures, University of Technology, Sydney
For
CSIRO Minerals Down Under National Research Flagship
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
ABOUTTHEAUTHORS
DepartmentofCivilEngineering:MonashUniversity
TheDepartmentofCivilEngineering,withintheFacultyofEngineeringatMonashUniversityaimsto
providehighqualityCivilEngineeringeducation,researchandprofessionalservicesgloballyforthemutual
benefitofthestudents,thestaff,theUniversity,industry,theprofessionandthewidercommunity
Forfurtherinformationvisitwww.eng.monash.edu.au/civil/
Researchteam:
Dr.MohanYellishetty,Lecturer
Dr.GavinM.Mudd,SeniorLecturer.
InstituteforSustainableFutures:UniversityofTechnology,Sydney
TheInstituteforSustainableFutures(ISF)wasestablishedbytheUniversityofTechnology,Sydneyin1996
toworkwithindustry,governmentandthecommunitytodevelopsustainablefuturesthroughresearch
andconsultancy.Ourmissionistocreatechangetowardsustainablefuturesthatprotectandenhancethe
environment,humanwellbeingandsocialequity.Weseektoadoptaninterdisciplinaryapproachtoour
workandengageourpartnerorganisationsinacollaborativeprocessthatemphasisesstrategicdecision
making.
Forfurtherinformationvisitwww.isf.uts.edu.au
Researchteam:
Ms.LeahMason,SeniorResearchConsultant;
Dr.TimPrior,ResearchPrincipal;
Dr.SteveMohr,SeniorResearchConsultant
Dr.DamienGiurco,ResearchDirector.
CITATION
Citethisreportas:
Yellishetty,M.,Mudd,G.,Mason,L.,Mohr,S.,Prior,T.,Giurco,D.(2012).Ironresourcesandproduction:
technology,sustainabilityandfutureprospects.PreparedforCSIROMineralsDownUnderFlagship,bythe
DepartmentofCivilEngineering(MonashUniversity)andtheInstituteforSustainableFutures(Universityof
Technology,Sydney),October2012.ISBN 978-1-922173-46-1.
ACKNOWLEDGEMENT
ThisresearchhasbeenundertakenaspartoftheMineralsFuturesResearchCluster,acollaborative
programbetweentheAustralianCSIRO(CommonwealthScientificIndustrialResearchOrganisation);The
UniversityofQueensland;TheUniversityofTechnology,Sydney;CurtinUniversity;CQUniversity;andThe
AustralianNationalUniversity.Theauthorsgratefullyacknowledgethecontributioneachpartnerandthe
CSIROFlagshipCollaborationFund.TheMineralsFuturesClusterisapartoftheMineralsDownUnder
NationalResearchFlagship.SpecialthanksareextendedtoProf.FionaHaslamMcKenzie(CurtinUniversity)
andDr.DanielFranks(CentreforSocialResponsibilityinMining,SustainableMineralsInstitute,University
ofQueensland)fortheircontributionstothebreakoutboxesinthereport.Thanksarealsodueto:Richard
Morris(HonoraryResearchFellow,CSIRO),RobertNew(ABARE),RichardOBrianandRonSait(Geoscience
Australia),LinusO'Brien(ICN),HilkeDalstra(RTX),PaulSturzaker(GrangeResources),BobNelson(Cliffs
Resources),andothers.Finally,wegratefullyacknowledgethereviewbyRoyLovel,CSIRO.
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
CONTENTS
Iron resources and production: technology, sustainability and future prospects
1. BACKGROUND
1.1. Aim
1.2. Introduction
5
5
5
2. METHODOLOGYANDDATASOURCES
3. IRONORE:SOURCES,USESANDFUTUREDEMANDFORECAST
26
26
29
7. FUTURETECHNOLOGICALDRIVERSANDTHEIRIMPLICATIONTOWORLDIRONORETRADE33
7.1. ImpurityRichIronOreBeneficiationOptions
33
7.1.1. Impuritiesinironoreandtheirpotentialeffectsonsteelmaking
33
7.1.2. Evaluationofironorebeneficiationtechnology
34
7.2. SteelmanufacturingtechnologiesusedinAustraliaareview
39
7.2.1. Basicoxygenfurnacetechnology
39
7.2.2. Electricarcfurnacetechnology
40
7.2.3. Energyandemissionsintensityissuesinsteelmaking
40
7.3. CanRecyclingReplacePrimarySteel?
43
7.4. HowdoesAustraliacomparewithrestoftheworldinsteelrecycling?
44
7.5. Ironoreandsteelsubstanceflowsandsustainabilityissues
45
7.6. NewTechnologiesforSteel
48
8. POLICYDRIVERS
50
9. CONCLUSIONS
52
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
FIGURES
Figure1HistoricalGDPgrowthandpopulationofAustralia
Figure2:Varioususesofironore
Figure3:Australianironoreminesanddeposits
Figure4:TrendsinEconomicDemonstratedResources&subeconomic/inferredresourcesironoreinAustralia
Figure5:AustraliasEDRsbyproducttype(top)asof2008;andtheirproductioninyear2008(bottom)
Figure6:Ironoregradedata:AustraliaandWorld
Figure7:Historicalglobalproductionofironore(left);andtheshareofAustralia(right)
Figure8:Australianironoreproduction,consumption,importsandexports;Australiasshareofworldexports
Figure9:Productionorironoresplitbyoretypesince1965
Figure10:RegionwiseproductionofironoreinAustralia(19292008)
Figure11:MarketsharesofcompaniesinAustralianironore;andsteelproduction
Figure12:Australiasironoreproductionandproductionfromlogisticgrowthmodels
Figure13:ValueofAustralianexports(left)andimports(right)ofmineralcommoditiesin2008/09(billion$)
Figure14:EmploymentinironoreandsteelindustryofAustralia
Figure15:AtypicalironorebeneficiationflowchartforhaematiticfinesfromGoa(India)
Figure16:TypicalmagnetiteorebeneficiationflowchartsforAustralia
Figure17:SchematicofsteelBOFsteelmakingtechnologyanditsrelevantenvironmentalinput/outputindicators
Figure18:SchematicofsteelEAFsteelmakingprocessesanditsrelevantenvironmentalinput/outputindicators
Figure19:Steelproductionroutesandenergyintensities
Figure20:Specificenergyconsumptioninthesteelindustry(Australia)
Figure21:SteelproductiontrendsinAustraliaandtheworld(TotalandEAFroutes)
Figure22:Steelcanrecycleratesintheworldin2007
Figure23:ExportsofsteelsubstancesfromAustralia(expressedincrudesteelequivalents)
Figure24:pricesofironoreandscrap(left);pigiron,billetsandslabsintheworld(right)(nominalUS$)
6
9
11
12
13
20
21
22
23
23
24
25
30
30
37
38
39
40
41
42
44
45
47
49
TABLES
Table1:Economicallyimportantironbearingminerals
8
Table2:Ironorereservesinselectedcountriesintheworld(2009data)
10
Table3:GeneticoregroupsandoretypesintheHamersleyProvince,Australia
13
Table4a:PilbaraironoreresourcesforRioTinto,RioTintoRobeRiverandRioTintoHopeDownsJointVentures 15
Table4b:PilbaraironoreresourcesforBHPBillitonandJointVentures(2010;productiongivenaswettonnesbasis)16
Table4c:PilbaraironoreresourcesforFortescueMetalsGroupandHancockProspecting(2010)
16
Table4d:MiscellaneousWesternAustralianjuniorironoremines(2010)
16
Table4e:MiscellaneousWesternAustralianironoreresources(2010)
16
Table4f:MiscellaneousSouthAustralianironoreminesandresources(2010)
18
Table4g:MiscellaneousTasmanianironoreminesandresources(2010)
19
Table4h:MiscellaneousNorthernTerritoryironoreminesandresources(2010)
19
Table4i:MiscellaneousQueenslandandNewSouthWalesironoreresources(2010)
19
Table5:Summaryofironoreresourcesbyoretypes(2010)
19
Table6:RegionwiseproductionofironoreinAustralia(ktore)(ABARE,2009)
23
Table7:EnvironmentalindicatorsofironoreminingactivitiesinWesternAustralia
27
Table8:SustainablemineralreservesmanagementindicatorsreportedbymajorironoreproducersinAustralia
28
Table9:SalienteconomicstatisticsofironoreandironandsteelinAustralia
30
Table10:Oremineralogyandsuggestedconcentrationmethodforironores(modifiedfrom:Silvaetal.,2002
36
Table11:Environmentalinput/outputindicatorsforBOFandEAFsteelmaking
43
Table12:ImportsandexportsofAustralianironoreandsteelproductsintheyear2010
46
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
1. BACKGROUND
This report is submitted as part of the Commodity Futures component of the Mineral Futures
Collaboration Cluster as a case study on iron ore in Australia. The Commodity Futures project
focusesonthemacroscalechallenges,thedynamics,anddriversofchangefacingtheAustralian
mineralsindustry.TheCommodityFuturesprojectaimsto:
ExploreplausibleandpreferablefuturescenariosfortheAustralianmineralsindustrythat
maximisenationalbenefitinthecoming30to50years
Identifystrategiesforimprovedresourcegovernanceforsustainabilityacrossscales,from
regionaltonationalandinternational
Establish a detailed understanding of the dynamics of peak minerals in Australia, with
regional,nationalandinternationalimplications
Developstrategiestomaximisevaluefrommineralwealthovergenerations,includingan
analysisofAustraliaslongtermcompetitivenessforspecifiedmineralspostpeak.
ThisreportcoversthecasestudyonironoremininginAustraliawithacriticalreflectiononfuture
environmentalandtechnologicalchallengesfacingironorerelatedminingandmineralindustries
inAustralia.
1.1. Aim
The aim of this report is to review the link between resources, technology and changing
environmentalimpactsovertimeasabasisforinformingfutureresearchprioritiesintechnology
andresourcegovernancemodels.Giventhatironorehasshownboombustcyclesinthepast,itis
thereforeimportanttoassessindetailthecurrentstateofAustraliasironoreindustry,especially
incomparisontoglobaltrendsandissues,withaviewtoensuringthemaximumlongtermbenefit
from Australias iron ore mining sector. This report aims to achieve such a detailed study
examining key trends in iron ore mining, such as economic resources, production and
environmentalandsocialissues,andplacingtheseincontextoftheglobalironoreindustry.Inthis
manner, it is possible to assess the current state of Australias iron ore industry, map possible
futurescenariosandfacilitateinformeddebateanddecisionmakingonthefutureofthesector.
1.2. Introduction
Australiaisdistinctiveamongindustrialisedcountrieswithstrongeconomies(withveryhighper
capitaGDP)foritsdegreeofdependenceonmineralsectorexportsandaverylowpopulationsize
besides Canada and Norway (Figure 1). The mining and minerals industry is Australias largest
export industry, which brings substantial economic benefits mainly through foreign exchange
earnings. In 2009 the total mineral industrys contribution to GDP was approximately 7.7%
(ABARE, 2009). Furthermore, mining has been one of the driving forces for much of the
explorationofAustraliasremoteinlandandforAustraliasindustrialdevelopment.
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
35
1,400
30
1,200
GDP at Current Prices
Population (Millions)
1,000
20
800
15
600
Historical
10
Population
25
400
Projected
0
1950
200
1960
1970
1980
1990
2000
2010
Figure1:HistoricalGDPgrowthandpopulationofAustralia
2020
2030
2040
0
2050
Although Australias vast endowment of minerals will not be exhausted soon, the extraction of
manyofthesemineralsisbecomingmorechallengingwithpassageoftime(Giurcoetal.,2010).
Forexample,thedecliningoregradesareindicativeofashiftfromeasierandcheapertomore
complex and expensive processing in social and environmental terms as well as economic.
Decliningresourcequalityhasalsoleadtodecliningproductivity(Toppetal.,2008)andtheenergy
intensity,intermsof$/kWh,hassubsequentlyrisenby50%overthelastdecade(SandyandSyed,
2008).
With the global demand for Australian minerals continuing to rise, as a mineral dependent
economy,Australiaisfacingseveralchallenges.Forexample,thechallengesofadaptingtocarbon
constraintsandproposedtaxchanges,landuseconflicts,andsoon.
ThisreportreviewsAustraliascurrentuseofitsironoremineralresources,futureissuesthatwill
affectprocessinganduseofmineralsandmetals,andthelongtermbenefitsthatAustraliamay
derivefromsuchuse.ThisworkispartoftheMineralFuturesResearchClusterwithintheMineral
Futures Initiative of the CSIRO Minerals Down Under Flagship comprising the University of
Queensland (Centre for Social Responsibility in Mining at the Sustainable Minerals Institute);
University of Technology, Sydney (Institute for Sustainable Futures and Department of Civil
Engineering Monash University); Curtin University; CQ University; Australian National University
andCSIRO.
To this objective, this report will comprehensively putforth several such issues which are
strategicallyimportanttothemineralindustrieslongtermsustainabilityaspectsingeneralandto
theironoreindustriesinparticular.
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Ironoreproductionandexports:USGS(2010a,b);BGS(2008).
Ironorereservesandresources:USGS(2010a,b);(e.g.TataSteel,ArcelorMittal,etc.)
Steelconsumptionandexports:WSA(2007,2010b);ISSB(2008).
PopulationandGDP:UN(2010a,b);UNSD(2010).
ForAustraliandata,thefollowingsourceswereused:
Iron ore production and exports: ABARE (2009); OBrien (2009); ABS (2010a,b); Mudd
(2009a,2010b).
Iron ore mineral reserves and resources: GA (var.); OBrien (2009); individual company
reports(e.g.RioTinto,BHPBilliton,FortescueMetalsGroup,etc.)
Steelconsumptionandexports:ABARE(2009);ABS(2010a,b);WSA(2007,2010b);ISSB
(2008).
PopulationandGDPstatisticalinformation:ABS,2010a,UN,2010a,bandUNSD,2010.
Steelconsumptionisestimatedasapparentpercapitaincrudesteelequivalents.Themodellingof
futureproductionandconsumptionwasdoneusingregressionanalysisofthehistoricaldata.The
GDPdatawasreportedinnominalAustraliandollars.
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Hematite
Magnetite Goethite
Chemical
Name
ferricoxide
ferrous
hydrousiron
ferricoxide oxide
Chemical
Fe2O3
formula
%Fe
69.94
(iron,wt%)
Colour
Crystal
Specific
gravity
Mohs
hardness
Meltpoint,
C
Siderite
Ilmenite
iron
ironcarbonate titanium
oxide
Pyrite
iron
sulfide
Fe3O4
HFeO2
FeCO3
FeTiO3
FeS2
72.36
62.85
48.2
36.8
46.55
hexagonal
yellowor
darkgrayto
brownto
black
nearlyblack
cubic
orthorhombic
whiteto
greenishgray ironblack
toblack
hexagonal
hexagonal
pale
brass
yellow
cubic
5.24
5.18
3.34.3
3.833.88
4.72
4.955.10
6.5
55.5
3.54
56
66.5
1565
1600
1370
steelgray
tored
Further, iron accounts for approximately 95% of all metals used (on mass basis) by modern
industrialsociety(Belhaj,2008).Themostimportantuseofironore(upto98%)isastheprimary
inputtosteelmakingwiththeremainderusedinapplicationssuchascoalwasheriesandcement
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
manufacturing(IBM,2007;IBISWorld,2009),withminorotherusesasschematicallyrepresented
inFigure2.Therefore,thedemandforironoreisheavilydependentonthevolumeandeconomic
conditionsforsteelproduction.
Figure2:Varioususesofironore
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Australia,Brazil,China,India,RussiaandUkraine.AccordingtotheUSGSsestimate,theworlds
totaleconomicreserves(economicallydemonstratedresources(EDRs)accordingtoGeoscience
Australia)areestimatedat160billiontonnes(Gt)crudeorecontaining77Gtofiron(Table2).
In 2009, Australia had about 12.5% of worlds reserves of iron ore and was ranked third after
Ukraine(19%)andRussia(16%)(Table2).Intermsofcontainediron,Australiahasabout13%of
theworldsreservesandisrankedsecondbehindRussia(14%).Australiaproducesaround15%of
theworldsironoreandisrankedthirdbehindChina(35%)andBrazil(18%)(Table2).TheChinese
ironoretonnagesareconvertedtocorrespondwithworldaverageFecontent.
Table2:Ironorereservesinselectedcountriesintheworld(2009data)(USGS,2010a)
Country IronOreReserves(Gt)
IronContent
(Gt)
Productionin2009(Mt)
Rankin2009
IronOre
CrudeSteel
IronOre
CrudeSteel
Australia
20
13
370
5.25
23
Brazil
16
8.9
380
26.51
22
7.2
900
567.84
India
4.5
260
56.6
Russia
25
14
85
59.94
Ukraine
30
56
29.75
USA
6.9
2.1
26
58.14
10
160
77
2,300
1,220
China
World
*
Chinaisbasedoncrudeore,notsaleableore(Chinahaslargebutlowgrade,poorqualityreserves)
10
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Figure3:Australianironoreminesanddeposits(Mudd,2009a)
11
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
50
Economic Resources
45
Inferred Resources
40
35
30
25
20
15
10
5
0
1900
1920
1940
1960
1980
2000
Figure 4: Trends in Economic Demonstrated Resources (EDR) and subeconomic and/or inferred
resourcesforironoreinAustralia(GA,var.;Mudd,2009a).
Asanadditionalcheckonthequality(oraccuracy)ofreservesdata,theironoremineralresources
reported by various companies in Australia was compiled in Tables 4 and 5, while Figure 5
presentspercentageandquantitysplitbyoretype.ForAustralia,thethreemajorminersareRio
Tinto,BHPBillitonandmorerecentlyFortescueMetalsGroup,producing202.2,106.1and27.3Mt
orein2009comparedtototalreservesandresourcesof16,700Mtoregrading60.5%Fe,13,054
Mtoregrading59.7%Feand7,960Mtoregrading58.9%Fe,respectively.Manycompanieshave
interestsinadditionalironoreresourcesinternationally(notincludedinTables4and5).TheUSGS
reports20Gtoforereservescontaining13Gtiron,respectively,forAustralia,whilethesumofall
of Australian iron ore companies reserves and resources (using JORC terminology) is 55,235 Mt
ore grading 57.3% Fe. Furthermore, Geoscience Australia reports 23.9 Gt iron ore as accessible
economicresources,withanadditional30.8Gtinsubeconomicresources(GA,var.).
The main limitation in current reporting is the impurities in iron ore, which is vital in judging
resourcerelated sustainability issues. For example, impurities such as phosphorous (%P), silica
(%SiO2)oralumina(%Al2O3)arecriticaltoslagvolume,chemistry,needofadditionalflux,extra
fuel, volume of material processed, etc.. These impurities are also critical to the quality of steel
productionandsteelproductioncostsyettheyarenotrequiredtobereportedalthoughmany
companiesvoluntarilyreportimpurities,somedonot(seeTables4and5,later).
The Pilbara Block of Western Australia encompasses some of the largest known iron ore
accumulations in the world. More importantly, several deposits in the region contain extensive
highgrade iron ore resources hosted in banded iron formations (BIF) of the 2.5 km thick, late
Archaean/early Proterozoic Hamersley Group (Silva et al., 2002). The following ore classification
has been developed (based on Ramanaidou, 2009; Silva et al., 2002; Ramanaidou et al., 1996;
12
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Harmsworthetal.,1990;MorrisandFletcher,1987;Morris,1983,1985,2002;andMorrisetal.,
1980):
H=dominantlyhematite
G=dominantlygoethite
M=dominantlymagnetite
h=minorhematite
g=minorgoethite
m=minormagnetite
Onthebasisofnomenclaturegivenintheparenthesis,thefollowingcommonnamesusedforiron
oredepositsareclassifiedasfollowingandshowninTable3.
Table3:GeneticoregroupsandoretypesintheHamersleyProvince,Australia
GeneticOreGroup
Geneticoretype
Dominantmineralogy
Symbol
BIFderivedirondeposits(BID)
LowPBrockman(LPB)
Haematite(goethite)
Hg
HighPBrockman(HPB)
Haematitegoethite
Hg
MarraMamba(MM)
Haematitegoethite
Hg
CID(Pisolite)
DID(Detrital)
Goethitehematite
Hematite(goethite)
Gh
H
ChannelIrondeposits
Detritalirondeposit(DID)
Brockman
19%
Other Hematite
22 Mt
CID
20%
Premium Brockman
6%
Magnetite
28%
Other Hematite
5%
Brockman
54 Mt
Marra Mamba
107 Mt
Magnetite
8 Mt
Marra Mamba
22%
Premium Brockman
50 Mt
CID
110
Figure5:AustraliasEDRsbyproducttype(top)asof2008;andtheirproductioninyear2008(bottom)
(OBrien,2009).
The geology and mineralogy of each major ore type is now briefly reviewed, and the same are
discussedthefollowingsubsections(OBrien,2009).
13
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
a)PremiumBrockmanirondeposits
ThePremiumBrockmanoresaresecondaryenrichmentsoftheBrockmanIronFormation,aPre
Cambrian banded iron formation (BIF). The deposits contain high grade, low phosphorus, hard,
microplatyhematiticore.CurrentlythereareonlytwodepositsinAustraliathatproducePremium
Brockmanore,thatis,MountWhalebackandMountTomPrice.TypicalcompositionforPremium
Brockmanoresisabout65%Fe,0.05%P,4.3%SiO2,and1.7%Al2O3.
b)Brockmanirondeposits
Brockman(BM)irondepositstypicallyhavehematiteasthedominantironmineral.BMdeposits
also have goethite in variable amounts and have varying phosphorus content and physical
characteristics. The variation exhibited by BM deposits is a result of different degrees of
dehydration of goethite to microplaty haematite which also affects the amount of residual
phosphoruscontent.AtypicalBMorehas62.7%Fe,0.10%P,3.4%SiO2,2.4%Al2O3and4.0%LOI
(lossonignition,whicheffectivelyincludesmoistureandcarbon).
b)MarraMambairondeposits
MarraMamba(MM)depositsallhavegoethitehematitemineralogy,withagreaterproportionof
goethitecomparedtoBMores.ThereisalsoarangeofphysicalpropertiesexhibitedwithinMM
deposits. The iron content of most high grade MM ores is about 62 per cent but can vary
significantly.AtypicalMMorecontainsabout62%Fe,0.06%P,3%SiO2,1.5%Al2O3,and5%LOI.
c)Channelirondeposits
TheChannelIronDeposits(CIDs)wereformedinancientmeanderingriverchannels.Asbedded
iron deposits were eroded by weathering, iron particles were concentrated in these river
channels. Over time these particles were rimmed with goethite deposited by percolating iron
enriched ground water approximately 1530 million years ago, which also fused the particles
together. CIDs are quite different from bedded ores. Their chief characteristic is their pisolitic
'texture':roundedhematitic'peastones',0.1mmto5mmindiameter,rimmedandcementedbya
goethiticmatrix.Theoreisbrownyellowincolour.Theytypicallycontainminoramountsofclay
indiscretelenses.TypicalcompositionofCIDisabout58%Fe,0.05%P,4.8%SiO2,1.4%Al2O3and
10%LOI.
d)Detritalirondeposits
Detrital iron deposits (DIDs) are found where weathering has eroded bedded iron deposits and
deposited ore fragments in natural traps formed by topography, usually drainage channels or
valleys. Some DIDs are loose gravels while others are naturally cemented (hematite
conglomerate). Both types are often found in the same deposit. The quality of the iron ore in
these deposits is dependant on the bedded iron ore deposit which was the source of the ore
particles. Typically these deposits are valued for the high proportion of high quality lump
containedwithinthem,aslumpsizedparticleshaveagreatertendencytobecapturedinthetrap
site.
e)Hematite
Theprimarymineralogyishematiteandthattheydonotfitintooneoftheotherproducttypes
explained above. The composition of other hematites can range from Pardoo where reserves
14
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
contain57.4%Fe,0.09%P,7.07%SiO2,2.4%Al2O3and4.0%LOItoKoolanIslandwherereserves
contain63.8%Fe,0.017%P,6.13%SiO2,1.01%Al2O3and0.46%LOI.
f)Magnetite
These deposits consist largely of magnetite and are most commonly BIF derived, although
hydrothermal and igneous derived deposits do contribute significantly to economically
demonstratedresources.SavageRiverpelletstypicallyassay66.3%Fe,0.02%P,1.9%SiO2,0.4%
Al2O3 and 1.0% LOI. Large magnetite resources at Balmoral, Cape Lambert and Karara are
increasinglyattractivedevelopmentsinthefaceofeverincreasingdemand.
Table4a:PilbaraironoreresourcesforRioTinto,RioTintoRobeRiverandRioTintoHopeDownsJoint
Ventures(2010)
62.7
MtTomPrice(Brockman)
248
62.0
MtTomPrice(MarraMamba)
37
61.5
77
60.6
290
62.6
Nammuldi(Detrital)
H
Hg
Paraburdoo(Brockman)
Hg
Paraburdoo(MarraMamba)
Hg
115
63.3
60.8
Yandicoogina(Pisolite)
176
58.6
Yandicoogina(ProcessProduct)
91
58.6
Yandicoogina(Junction)
627
58.1
TureeCentral(Brockman)
96
62.0
351
62.2
100
62.5
WesternTurnerSyncline(Brockman)
Channar(Brockman)
Hg
11.016Mt
EasternRange(Brockman)
Hg
9.206Mt
HopeDowns1(MarraMamba)
Hg
HopeDowns1(Detrital)
RobeRiverPannawonica(Pisolite)
Gh
RobeRiverWestAngelas(MarraMamba)
Hg
RobeRiverMiscellaneous(Detrital)
Hamersleyundevelopedresources
RobeRiverMiscellaneous(Pisolite)
Gh
RobeRiverMiscellaneous(MarraMamba)
Hg
31.720Mt
31.277Mt
90
62.6
418
61.5
59.5
568
56.3
534
61.8
1,709
60.2
58.0
441
60.8
28.363Mt
RobeRiverMiscellaneous(Detrital)
33
61.0
HopeDowns4(Brockman)
Hg
315
62.6
HopeDownsMiscellaneous(Brockman)
Hg
116
61.9
HopeDownsProcessOre(Brockman)
Hg
207
56.9
HopeDowns(MarraMamba+Detrital)
Hg/H
210
61.6
HamersleyMiscellaneous(Brockman)
Hg
3,652
62.5
HamersleyProcessOre(Brockman)
Hg
1,375
57.3
HamersleyMiscellaneous(MarraMamba)
Hg
3,091
62.0
HamersleyMiscellaneous(ChannelIron)
Gh
2,591
57.1
HamersleyMiscellaneous(Detrital)
635
61.0
notreported.
62.1
390
%LOI
notreported.
658
Hg
%Al2O3
notreported.
Hg
Marandoo
%SiO2
notreported.
Brockman4
%P
notreported.
62.6
Nammuldi(MarraMamba)
%Fe
notreported.
Hg
Ore
(Mt)
52
notreported.
Brockman2
Prod.
notreported.
Type
112.706Mt
Hamersleyoperatingmines
15
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Table4b:PilbaraironoreresourcesforBHPBillitonandJointVentures(2010;productiongivenaswet
tonnesbasis)
Operatingmines
Type
MtNewmanJV(Brockman)
MtNewmanJV(MarraMamba)
Jimblebar(Brockman)
Jimblebar(MarraMamba)
MtGoldsworthyJV(Nimingarra)
MtGoldsworthyJVAreaC(Brockman)
MtGoldsworthyJVAreaC(MarraMamba)
YandiJV(Brockman)
YandiJV(ChannelIron)
Undevelopedresources
BHPIronOreExploration(Brockman)
BHPIronOreExploration(MarraMamba)
Hg
Hg
Hg
Hg
H
Hg
Hg
Hg
Gh
Hg
Hg
Prod.
(wet)
37.227Mt
1.452Mt
39.531Mt
38.102Mt
Ore
(Mt)
3,097
1,164
1,687
403
169
1,979
1,153
2,318
1,541
1,213
348
%Fe
%P
%SiO2
%Al2O3
%LOI
60.6
59.7
60.0
59.7
61.5
59.6
61.0
59.0
56.5
59.6
59.6
0.12
0.07
0.12
0.08
0.06
0.12
0.06
0.15
0.04
0.14
0.06
5.2
4.1
5.1
4.6
8.2
5.5
3.7
5.0
6.3
4.0
4.8
2.6
2.5
3.1
2.5
1.2
2.7
1.9
2.4
1.8
2.5
2.5
4.7
7.2
5.2
6.8
1.0
5.8
6.5
7.3
10.7
7.4
6.0
Table4c:PilbaraironoreresourcesforFortescueMetalsGroupandHancockProspecting(2010)
FortescueMetalsGroup
Type
Prod.
(wet)
Ore
(Mt)
%Fe
%P
%SiO2
%Al2O3
%S
%LOI
CloudbreakChristmasCreek
Chichester
SolomonStage1
SolomonStage2
GlacierValley
NorthStar
HancockProspecting
RoyHill
H
H
H
H
M
M
Hg
40.857Mt
3,683
695
1,844
1,014
1,230
1,230
2,420
58.71
52.78
56.5
56.0
33.1
32.0
55.9
0.053
0.064
0.075
0.081
0.105
0.097
0.054
4.13
8.64
7.07
7.32
38.8
40.3
6.74
2.39
5.49
3.10
3.84
1.59
2.10
4.18
0.047
7.78
7.66
8.44
8.06
7.65
6.43
6.99
Table4d:MiscellaneousWesternAustralianjuniorironoremines(2010)
Type
Prod.
%Fe
%P
%SiO2
%Al2O3
%S
%LOI
2.117Mt
Ore
(Mt)
436.33
NorthPilbara
56.3
0.11
6.9
2.3
0.01
9.3
JackHills(Murchison)
Koolyanobbing
CockatooIsland
KoolanIsland
TalleringPeak
SpinifexRidge
H
H
H
H
H
H
1.676Mt
8.5Mt
1.4Mt
3.121Mt(wet)
3.228Mt(wet)
0.055Mt(wet)
3,218
99.3
2.3
74.3
11.2
7.27
32.2
62.0
67.6
62.6
61.1
58.6
0.03
0.01
0.04
0.15
42.6
8.77
6.07
9.2
1.1
0.84
2.70
1.6
0.007
2.5
4.6
Table4e:MiscellaneousWesternAustralianironoreresources(2010)
Type
ExtensionHill
Ore
(Mt)
23.1
Nullagine
Karara
MaitlandRiver
IronValley
SouthMarillanaPhilsCreek
Gh
M
M
H
H
101.6
2,409
310
259.1
15.1
%Fe
%P
%SiO2
%Al2O3
%S
%LOI
58.4
0.06
7.42
1.91
54.1
35.9
34.7
58.3
55.6
0.017
0.09
0.06
0.17
0.10
4.54
42.9
42.0
5.4
7.2
3.23
1.1
1.4
3.2
4.2
0.015
0.12
12.4
0.09
6.9
8.1
16
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Type
%Fe
%P
%SiO2
%Al2O3
%S
%LOI
H
H
H
H
H
H
M
M
H
H
M
H
Gh
Hg
H
H
M
M
M
H
H
H
H
H
M
M
H
M
M
H
M
H
Ore
(Mt)
46.8
40
107
241.6
21.5
79.0
616.8
530
5.75
6.9
46
13.1
1,067
156
38
12
2,010
456
569.85
15.4
246.9
70.8
212.6
63.6
1,605
561
2
5,088
1,556
192
822
42.6
NorthMarillana
LambCreek
KoodaideriSouth
BungarooSouth
Dragon
Rocklea
MtBevan
MtIda
MtMason
BlueHills
BlueHills
MungadaRidge
WestPilbara(Aquila)
WestPilbara(Aquila)
WestPilbara(Atlas)
Midwest
Ridley
BallaBalla
Koolanooka
JackHills(SinosteelMidwest)
WeldRange
RobertsonRange
DavidsonCreek
MirrinMirrin
BalmoralSouth
Beyondie
MtDove
GeorgePalmerSinoCiticPacific
CapeLambert
CashmereDowns
CashmereDowns
CentralYilgarnIronOreProject
50.0
59.4
58.6
57.2
55.4
59.9
32.1
31.94
59.9
59.9
41.4
61.1
56.5
61.5
53.6
60.0
36.5
45
36.25
59.7
57.32
57.47
56.23
53.01
32.7
27.5
58.5
23.2
31.2
32.9
32.5
58.6
0.05
0.11
0.14
0.15
0.03
0.05
0.074
0.064
0.10
0.09
0.14
0.081
0.134
0.04
0.06
0.09
0.109
0.082
0.100
0.025
0.13
9.5
8.1
5.1
7.0
8.2
47.4
45.88
7.4
8.4
35.6
6.3
6.77
3.66
7.5
6.3
39.3
6.00
6.14
6.29
40.5
4.2
7.7
3.3
2.5
2.4
3.5
3.4
1.10
3.5
1.2
0.5
2.0
3.44
2.45
4.8
4.8
0.08
3.50
3.62
3.40
2.24
1.3
0.13
0.201
0.08
0.03
0.17
0.017
0.008
0.05
0.14
10.4
6.2
7.9
8.1
11.2
3.0
3.4
3.9
8.32
5.43
9.3
3.7
4.1
7.37
8.90
8.77
6.48
9.6
IrvineIsland
LakeGilesMacarthur
LakeGilesMoonshine
LakeGilesMoonshineNorth
H
H
M
M
452
25.02
427.1
283.4
26.5
55.2
29.3
31.4
0.03
0.07
0.05
0.04
53.9
8.2
42.1
22.7
3.39
4.5
1.1
0.7
0.11
0.17
0.5
0.2
7.7
0.02
0.89
LakeGilesGroup
MagnetiteRange
Marillana
Marillana
MtAlexander
MtBevan
ParkerRangeMtCaudan
PeakHillMtPadbury
PrairieDowns
PrairieDowns
Southdown
SteepleHill
VictoryBore
M
M
H
Gh
M
M
Gh
M
H
Hg
M
H
M
539.8
391.1
1,528
101.9
392.9
617
35.1
850
1,400
23.3
654.4
19
151
28.8
29.98
42.6
55.6
29.5
32.1
55.9
27.3
23.5
44.2
36.5
58.4
25
0.094
0.020
0.03
0.04
0.01
0.013
5.3
6.4
38.6
21.9
7
28.6
3.7
2.8
15.5
5.2
6
14.8
0.08
9.7
8.9
8.1
8.0
1.6
0.56
17
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Type
WestPilbaraHamersley(WinmarCazaly)
WestPilbara(Midas)
WilunaWest
Yalgoo(Ferrowest)
Yalgoo(Venus)
YandicooginaSouth
MtForrest
MtForrest
Speewah
Pilbara(Flinders)
Pilbara(Flinders)
Gh
Gh
H
M
M
H
Mh
M
M
H
Hg
Ore
(Mt)
241.6
11.5
127.2
552.2
698.1
4.3
19
1,430
3,566
550.1
113.0
%Fe
%P
%SiO2
%Al2O3
%S
%LOI
54.3
53.1
60.2
27.21
29.3
55.8
42.3
31.5
14.8
55.6
58.5
0.04
0.06
0.059
0.04
0.07
0.07
0.10
11.8
7.1
48.30
48.6
7.7
9.6
5.4
4.3
2.4
5.03
2.2
3.3
4.6
3.6
5.6
3.7
1.6
8.9
5.7
6.3
Table4f:MiscellaneousSouthAustralianironoreminesandresources(2010)
Operatingmines
Type
Prod.
MiddlebackRangesGroup
6.195Mt
Ore
(Mt)
191.3
%Fe
%P
%SiO2
%Al2O3
%S
%LOI
57.9
MiddlebackRangesGroup
CairnHill
Undevelopedresources
Wilgerup
BaldHillEastWest
KoppioEastWest
IronMount
CarrowNorthSouth
BungalowWesternCentralEastern
GumFlatBarns
GumFlat
PeculiarKnobBuzzardTui
HawksNestKestrel
HawksNestOthers
WilcherryHill
Hercules
Hercules
Hercules
HerculesSouth
M
M
H
M
M
M
M
M
Hg
M
H
M
M
M
H
G
M
M
1.556Mt
0.324Mt
395.4
11.4
13.95
28.7
39.6
6.7
51.9
29.3
3.6
99.3
37.6
220
349
69.3
3.58
36.03
154.33
21.7
38.3
49.5
57.6
27.5
29.7
37.2
31.2
38.3
46.2
24.4
62.8
36
35.2
25.9
41.86
40.75
23.58
33.27
0.04
0.06
0.06
0.09
0.20
0.19
8.0
38
32.0
21.51
27.79
49.19
0.8
0.9
7.9
8.32
3.16
2.37
0.3
0.08
0.03
0.09
0.7
0.7
7.1
7.73
7.62
4.11
Maldorky
MurphySouth
BooLoo
RazorbackRidge
Sequoia
M
M
M
M
M
147.8
1,006
328
568.6
22
30.1
16.7
17.3
25.4
28.4
0.09
0.09
0.19
52.8
52.4
43.6
12.6
11.5
6.9
0.7
2.1
18
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Table4g:MiscellaneousTasmanianironoreminesandresources(2010)
Operatingmines
SavageRiver
Kara
Undevelopedresources
Livingstone
MtLindsay
NelsonBayRiver
Type
M
M
H
M
M
Prod.(Mt)
Ore(Mt)
306.1
18.58
2.2
30
12.6
%Fe
52
47.7
58
33
36.1
%P
0.09
%SiO2
5.3
%Al2O3
1.8
%S
0.03
%LOI
7.1
%Al2O3
8.3
2.7
2.63
%S
%LOI
9.4
%LOI
11.1
9
Table4h:MiscellaneousNorthernTerritoryironoreminesandresources(2010)
Operatingmines
FrancesCreek
FrancesCreek
Undevelopedresources
MtPeake
RoperBar
RoperBarHodgsonDowns
Type
H
G
M
H
H
Prod.(Mt)
Ore(Mt)
10.06
1.28
160.9
311.8
100.0
%Fe
58.1
53.2
22.3
39.9
48.3
%P
0.11
0.11
0.01
0.08
%SiO2
34.3
28.4
18.8
Table4i:MiscellaneousQueenslandandNewSouthWalesironoreresources(2010)
NewSouthWales
CobarMainline
FrancesCreek
Queensland
ConstanceRange
Type
M
M
Prod.(Mt)
Ore(Mt)
627
1,400
295.96
%Fe
10.3
15.5
53.1
%P
0.02
%SiO2
10.38
%Al2O3
1.63
%S
ErnestHenry
105
27.0
Table5:Summaryofironoreresourcesbyoretypes(2010)
OreType
G
Gh
H
Hg
M
Mh
Total
Count
2
10
63
32
54
1
162
Ore(Mt)
37
7,968
20,466
28,133
35,802
19
92,425
%Fe
41.2
56.9
49.0
60.2
27.9
42.3
44.9
%P
0.20
~0.06
~0.06
~0.11
~0.08
0.08
%SiO2
~27
~6.8
~18.5
~5.1
~42.5
22.7
%Al2O3
~3.1
~2.7
~3.8
~2.8
~3.0
3.1
%S
~0.03
~0.02
~0.1
%LOI
~7.5
~9.5
~6.5
~6.2
~2.7
5.2
19
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
onsaleableproductionandnotrawore,despitethemajorityofironorerequiringbeneficiation
before use (Mudd, 2009a, 2010b). Despite the issues with the data, the longterm trend is a
gradualoregradedeclineforsaleableironore.
70
Australia - %Fe
65
60
World - %Fe
55
50
45
40
35
30
1900
1920
1940
1960
1980
2000
2020
Figure6:Ironoregradedata:AustraliaandWorld
Thisdecliningtrendinoregradesmeansthatforextractingeachtonneofmetalwewouldhaveto
minemoreore,creatingmoretailingsandwasterockandrequiringmoreenergy,waterandother
inputsperunitmineralproduction(Mudd,2007a,b,2010a,b).Inaddition,asoregradesdecline,
itiscommontorequirefinergrindingtomaintainoptimumextractionefficiencyareflectionon
thedecliningqualityoforesaswellasgrades.Theendresultissignificantupwardpressureonthe
environmentalfootprintofmineralproductionatatimewhentheworldisfacingbothpeakoil
and climate change due to anthropogenic greenhouse gas emissions. As such factors are
addressedthroughsuchschemesasemissionstradingoracarbontax,thiswillinevitablylinkwith
metalsprices.
Eightypercentoftheworldssteelmakingisthroughtheblastfurnacerouteandhencetheroleof
ironoreasarawmaterialanditsqualitybecomeverycriticaltoachievesteelwiththebestquality
fromhotmetal.IronoresconsistofvariousimpuritiesintheformsofAl,PandSi,andthisposes
majorbeneficiationproblemsespeciallyinfinesprocessing(seeUpadhyayandVenkatesh,2006;
Abzalovetal.,2007;Zhuetal.,2009).Thepresenceoftheseelementsalongwithsulfuradversely
affectsthequalityofironoresandhasagreatbearingonperformanceofblastfurnacesandsteel
quality(UpadhyayandVenkatesh,2006).
20
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
2,000
80%
1,500
World
1,000
60%
Rest of the World
40%
20%
500
Brazil's Share
Brazil
Australia's Share
Australia
0
1949
1959
1969
1979
1989
1999
0%
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
2009
Figure7:Historicalglobalproductionofironore(left);andtheshareofAustralia(right)
Figure8(below)presentsAustralianironoreproduction,consumption,importsandexports(left)
aswellasAustraliasshareofworldironoreexports(right).Itisclearlyevidentthat,historically,
Australia has been a net exporter of iron ore much of which was exported to Japan, Korea,
Europe and more recently to China. Australias share of world iron ore exports have been
increasingsince1980with35%in2008(rightsideofFigure8).
21
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
100%
350
300
250
80%
Production
200
Exports
150
40%
Brazi's Share
100
20%
Australia's Share
50
Consumption
Imports
0
1980
1985
1990
1995
2000
2005
0%
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
2010
Figure 8: Australian iron ore production, consumption, imports and exports (left); Australias share of
worldironoreexports(right)
Ironoreproductionbyoretypesince1965isillustratedinFigure9.Itisevidentthatsince1970s,
totalironoreproductionhasbeengrowingwhereastheproductionofPremiumBrockmanorehas
remainedsteadysince1973.ThedevelopmentofMMandCIDcanalsobeclearlydistinguishedat
an increasing rate up to present. The change in the blend of Australian iron ore shows that the
change from small production of other hematite followed by the development of premium BM
productionandthesubsequentinclusionofMM,Brockmanandlimonite.
350,000
Marra Mamba
300,000
Production (Mt)
250,000
Other Hematite
Limonite
200,000
Magnetite
150,000
100,000
50,000
0
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
Figure9:Productionorironoresplitbyoretypesince1965(OBrien,2009)
22
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
5.2. How are different regions contributing to Australias iron ore and
steel production?
Since1960,afterthediscoveryofPilbara,WesternAustralia(WA)dominatestheAustralianiron
oreindustrywithnearly97%ofthetotalproductionofAustralia(Figure10andTable6).However,
thereareafewironoreminesthatoperateintheNorthernTerritory,SouthAustralia,Tasmania
andNewSouthWales,buttheproductionfromtheseareasisnegligiblewhencomparedtoWA.In
200910,Australiaproduced423Mtwith97%producedinWesternAustralia.Exportsin200910
totalled390MtwithavalueofAU$34billion.
Table6:RegionwiseproductionofironoreinAustralia(ktore)(ABARE,2009)
Region
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10
WA
162.96 176.35 181.79 207.11 216.61 246.26 258.39 281.16 313.51 341.54 410.21
SA
2.69
2.90
3.22
3.48
2.67
3.48
3.49
4.70
8.14
6.92
8.28
Tas
1.60
1.89
2.20
2.29
2.21
2.17
1.93
1.84
2.44
2.33
2.36
NT
Australia 167.94 181.71 187.21 212.88 221.49 251.92 263.82 287.69 324.69 353.00 423.39
275
SA
TAS
WA
220
Others
165
110
55
0
1889
1899
1909
1919
1929
1939
1949
1959
1969
1979
1989
1999
Figure10:RegionwiseproductionofironoreinAustralia(19292008)
Theironoreminingindustryishighlyconcentrated,withminesoperatedbythetwolargestfirms,
namelyRioTintoandBHPBilliton,accountingfor70%oftotalproduction(left,Figure11)withall
of their mines located in the Pilbara region of Western Australia (Table 4). The iron and steel
manufacturingindustryisalsohighlyconcentrated,withtwomajorplayersaccountingfor85%of
thetotalproduction.Highconcentrationreflectstheeconomiesofscaleavailableintheindustry,
23
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
therelativelysmallsizeofthedomesticmarketandthemodestroleplayedbyexports(rightof
Figure11).
Others
(15%)
(42%)
Others
(21.9%)
OneSteel Limited
(25%)
Figure11:MarketsharesofcompaniesinAustralianironore(left);andsteelproduction(right)
5.3. How much of the Worlds Iron Ore Demand Can Australia Supply?
5.3.1. Peak iron of Australia a projection into the future using the logistic growth
curve
Mineralresourcesaregenerallyconsideredfiniteinpotentialsupplysincetheycannotberenewed
bynaturalprocessesoverhumantimeframes,andcombinedwiththedifficultiesinfindingmore
deposits with available technologies; this has led to many forecasts of resource depletion. If a
resource is consumed faster than it is replenished it will unmistakably be subject to depletion.
Fromthispremise,thetermpeakironorecanbedefinedasthemaximumrateoftheproduction
of iron ore in any area under consideration, recognizing that it is a finite natural resource and
subjecttodepletion.
A model for extrapolation of production curves of finite resources was at first proposed by
Hubbert (1956, 1962). This approach assumes that production begins at zero, before the
productionhasstarted,andendsatzero,whentheresourcehasbeenexhausted.Hubbert(1956,
1962) was the first to treat the issue of depletion quantitatively and observed that cumulative
production of an exhaustible resource as a function of time (t, years) usually (but not always)
followedalogisticgrowthcurve,givenby:
Q (t )
Qmax
(1 a exp (bt ))
(Equation1)
Where,Qmaxisthetotalresourceavailable(orultimaterecoverableresource),Q(t)thecumulative
productionattimet,andaandbareconstants.
24
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
TheprimaryassumptionsHubbert(1956,1962)usedtounderpintheapplicationofpeakcurves
toanalysenonrenewableresourceproductionare(e.g.Giurcoetal.,2009;MohrandEvans,2009;
Bentley,2002):
The population of producing fields is sufficiently large so that the sum of all fields
approachesanormaldistribution.
Thelargestfieldsarediscoveredanddevelopedfirst.
Productioncontinuesatitsmaximumpossiblerateovertime.
Ultimaterecoverablereservesareknown.
Using Equation 1 and iron ore production data from 1850 to 2009, we have determined the
parametersa,b,andQmaxinEquation(1)thatbestfitthesedata.ThedeterminedvaluesofQmax=
33.72Gt,a=72275,andb=0.06(Figure12);Qmax=64.52Gt(EDR+SubeconomicandInferred
Resources),a=151778,andb=0.06(Figure12);withabaseyearof1850.
1,100
1,000
900
Actual
800
700
600
500
400
300
200
100
0
1850
1875
1900
1925
1950
1975
2000
2025
2050
2075
2100
2125
2150
2175
2200
2225
2250
Figure12:Australiasironoreproductionandproductionfromlogisticgrowthmodels:withQmax=33.72
Gt(left);withQmax=64.52Gt(EDR+SubeconomicandInferredResources)
Forironore,Australiasmineralresourcesrankhighlybyworldstandardsandtheirindicativelifeis
considerable(Table2,3and4).Thisis(afterlate1960s)thestartingpointforAustraliasabilityto
profitablyexploitthisabundantnaturalresourceonasustainedlongtermbasis,thusresultingin
highercommodityrevenues.Atthesametime,theAustralianironoreproductionhasincreased
manyfoldanditisexpectedthatthistrendwillcontinueforsometimeintothefuture(Figure12).
25
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
However, according to Papp et al. (2008) there are numerous views on the factors that will
influencemetalspricesintheworld:1)accordingtobusinessanalysts,supplydemandbalanceis
what determines the prices of metals; 2) investment analysts say that expectations play an
important role in determining metals price; 3) the commodity analysts argue that the prices
increase as the number of weeks of supply in stocks diminishes; and 4) the financial market
analysts say that increased speculative investment in metals causes the price to rise. In reality,
commoditypricesareaffectedincombinationbyalloftheabovereasonsplusofcoursechanges
inthecashcostofmineralproduction(fuels,labour,capital,andsoon).
BENEFITS,
AccordingtothemajorinternationalreportOurCommonFuture,sustainabledevelopment(SD)
means development that meets the needs of the present without compromising the ability of
future generations to meet their own needs (WCED, 1987). Assessment of sustainability in the
caseofminingrequirestheknowledgeofSDindicators,suchasproductiontrends,numberofjobs
created, community benefit, electricity, fuel, water used, solid wastes generated, land
rehabilitated,healthandsafetyissues,royalties,economicresourcesandsoon.
26
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Table7:EnvironmentalindicatorsofironoreminingactivitiesinWesternAustralia#
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
Totalemissions
(ktCO2e)
kgCO2e/t
orerailed
728
7.3
836
7.9
933
7.9
1,068
8.3
1,143
7.6
1,195
7.9
1,398
8.6
1,737
10.16
1,862
9.13
*Nodatawasgiven;#RioTinto
Landarea
inuse(ha)
9,901
9,867
16,670
17,271
11,860
12,943
15,181
*
*
Land
rehabilitated
(ha)
3,943
4,462
4,483
4,632
4,665
4,707
5,085
267
*
Freshwater
used(ML)
Rate
(L/t)
155
127
215.4
162.9
174
154
191
229
236
10,818
8,899
25,291
20,640
24,652
20,683
29,780
39,159
48,144
As a result of beneficiation of iron ore, which typically occurs in a liquid medium, the iron ore
industry requires very large quantities of water. In addition, many pollution abatement devices,
suchaswatersprinklingonhaulroads,stockpiles,etc.,usewatertocontroldustemissions.Ata
givenfacility,thesetechniquesmayrequirebetween2,200and26,000litresofwaterpertonof
ironconcentrateproduced,dependingonthespecificbeneficiationmethodsused(USEPA,1994).
It was further observed that the amount of water used to produce one unit (l t of ore) has
increasedconsiderably(in1954,approximately1,900litresofwaterwasusedandthesameinthe
year1984,hadrisento14,000litperunit(USEPA,1994).
Although according to NGERA a national framework for the reporting and dissemination of
informationaboutgreenhousegas(GHG)emissionsitismandatoryforallthecompanies(that
areaconstitutionalcorporationandmeetareportingthreshold)toreportontheirGHGemissions,
energy production, energy consumption as a result of their production activities, not every
companyisreportingthesefiguresindetail.Inmostcasesthecompanieschoosetoreporttheir
sustainable indicators on the group scale (or customer sector groups (CSGs) aligned with the
commodities they extract) rather than on individual mine, regional and or country basis. For
example,companies,suchasBHPBilliton,FortescueMetals,etc.,donotpublishtheseindicators
individually.
Table 8 presents a matrix on sustainable mineral reserves management indicators reporting by
major iron ore producers in Australia for the 2009, which clearly exemplifies how different
companiesreportontheseindicators.
27
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Table8:SustainablemineralreservesmanagementindicatorsreportedbythemajorironoreproducersinAustralia2009(SMRMI)
Company
Ore
Raw
Saleable
Waste
Energy
Grade
Rock
Direct
Indirect
CO2Emissions
Water
Direct
Amount
Indirect
SO2
NOx
Source
BHPBilliton
RioTinto(Hamersley)
FortescueMetals
Cliffs
MtGibson
OneSteel
GrangeResources
PeakMineralsIndicator
GEO7
GEO9
ENV1
ENV8
ENV4
ENV2
ENV3
ENV6
ENV5
Note:tick()meansdataisreported.
28
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Unit
kt
2002/03
199,146
kt
kt
6,111
9,399
Ironore
&pellets
Value
Iron&steel
Value
Scrap
Value
2004/05
251,935
2005/06
263,853
2006/07
287,693
2007/08
324,693
2008/09
352,996
2009/10
393,868
4,352
5,568
5,135
kt
5,926
5,969
6,318
6,392
6,329
9,430
7,395
7,866
8,010
8,151
ExportsofIronOreandIronandSteelfromAustralia
181,478 194,773 228,456 239,380 257,365 294,293
323,451
362,396
$m
kt
$m
kt
$m
5,342
3,589
1,855
890
211
34,234
1,741
1,363
1,742
749
29,960
1,518
851
1,875
690
3,599
3,850
Ironore
&pellets
Value
Iron&steel
Value
kt
4,667
$m
kt
$m
114
1,306
1,226
IronOre
Value
Steel
Value
kt
$m
kt
$m
2003/04
222,797
5,277
8,120
12,854
15,512
20,511
3,818
2,338
2,428
2,648
2,131
2,004
2,031
1,674
1,743
1,562
955
1,009
1,876
1,328
1,783
298
402
467
607
833
ImportsofIronOreandIronandSteelbyAustralia
5,417
4,648
5,026
4,722
4,401
176,811
5,228
2,283
629
140
1,583
1,353
145
222
338
311
269
195
2,116
2,191
2,318
1,848
2,082
1,369
2,041
2,075
2,479
2,225
3,192
1,822
NetTrade(ExportsImports)
189356
223808
234354
252643
289892
319852 358,546
5137
7975
12632
15174
20200
33965 29,765
2235
222
237
330
283
341 149
651
10
401
736
663
1829 971
29
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Gold: 11.25
Others: 57.56
Others: 14.93
Coal: 54.67
Uranium: 0.99
Figure 13: Value of Australian exports (left) and imports (right) of mineral commodities in 2008/09
(billion$)
25,000
250
20,000
200
15,000
150
10,000
100
Number of Establishments
50
0
1992
1994
1996
1998
2000
2002
2004
2006
2008
Figure14:EmploymentinironoreandsteelindustryofAustralia
Over the past 5 years (20032008), employment has increased by ~18% in the iron ore industry
whilst the steel industry has declined by ~10%. However, compared to the early 1990s, the
employmentironoreindustryhasdeclinedby~13%despitenearlyadoublingofironoremines.
30
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Part of the longterm decrease can be attributed to businesses gaining productivity through
rationalisationofoperations;changingworkpracticesaswellasthecontinuingevolutioninmore
powerful and productive machinery (especially haul trucks). However, according to MCA (2000)
theusecontractors,asareplacementfordirectemployment,haveshiftedtheemploymentgains
flowingfromincreasedactivityandnewproduction.Thechangeinemploymentassociatedwith
automationwouldalsohaveanumberofpotentialflowonimpactsforminingcommunities(see
BoxX).
Box1.byKarenMcNab,UniversityofQueensland
Thesustainabilitychallengethecaseofautomationinironore
TheUniversityofQueenslandsCentreforSocialResponsibilityinMining(CSRM)isexploringthesocial
implicationsofautonomousandremoteoperationtechnologiesintheAustralianminingindustry.Muchof
thedevelopmentinautomationhasbeeninthePilbararegionofWesternAustraliaAustraliaslargest
ironoreproducingregion.Inidentifyingthesocialimplicationsofautomation,theprojecthighlightsthe
sometimesuneasyrelationshipbetweendifferentsustainabilityfactors.
Anumberofminingcompanieshaveannounced
planstoimplementautonomoushaultruckfleets
andundergroundloaders.Themostambitiousplan
forautomationisRioTintosMineoftheFuture
programwhichincludesahalfbilliondollar
investmentindriverlessironoretrainsinthe
Pilbara;newtechnologiesinundergroundtunnelling
andmineralrecovery;aremoteoperationscentrein
Perth;andafleetof150driverlesshaultrucks(Rio
Tinto,2012).
Companiesciteincreasedproductionefficiencyandimprovedminesafetyasthemainbenefitsof
automation,claimingitcontributestooverallminesustainability.Thesustainabilityofamine,however,
extendsbeyondproductionefficiencyandworkplacesafetytoencompassallimpacts,risksandbenefits.
Asanindustrywithastrongregionalpresence,theworkforcemanagementpracticesoftheminingsector
andhow,whereandwithwhomminingcompaniesdobusinesshavesignificantimplicationsforthe
sustainabilityofregionalcommunities.
Automationandremoteoperationcentreswillredefinethemineworkforceandtheconceptofthe
'miningcommunity'.Withinadecade,automatedminesareexpectedtohaveonlyskeletalonsite
workforces.Semiskilledfunctionssuchastruckdrivingandtraindrivingwillbeconductedfromremote
operationcentresincapitalcitiesandhighlyspecialistteamswillvisitminesatscheduledperiodsto
supportotherwiseremotemaintenanceandmanagement.Itisthesocialimplicationsofthesechanges,
andtherisktheyposetothesuccessfulimplementationofautomation,whichCSRMisworkingto
understand.
Inthecaseofironore,automationisexpectedtogeneratea50%reductioninoperationalroles,resulting
inapossible3040%reductionintheminingworkforce.Themajorityofthesejobsareinsemiskilled
occupationssuchastruckdriving,whichisanimportantsourceofregularemploymentforIndigenous
employeesapproximately50%ofwhomoccupysemiskilledpositions(BreretonandParmenter,2008in
McNabandGarciaVasquez,2011).
CSRMcommissionedeconomicmodellingbasedonthelabourforcebreakdownofanexampleopencut
ironoremineandextrapolatedtoexaminePilbarawidescenarios.Allmodelledscenariosshowanetloss
infirst,secondandthirdorderjobswithina75kmradiusoftheselectedminingtown.Thescenariowith
31
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
theleastimpactisbasedontheexistenceofaremoteoperationcentrebeinglocatedinaregionaltown.
Automationisalsolikelytochangeaminesitessupplychainactivitiesincludingmaintenanceactivities
andlocalprocurement.Bothofthesechangeswillinturnhaveimplicationsforregionalemployment,
regionalbusinessopportunitieswithimplicationsforeconomicopportunities,regionalpopulations,
populationdependentsocialservices,andregionalinfrastructure(McNabandGarciaVasquez,2011).
Automationwillrequirethecreationofnewroleswithhigherorderskillsandspecialisttradespeopleand
professionals(HorberryandLynas,2012;LynasandHorberry2011).Therelocationofminingjobsaway
fromminesitestourbancentresmayalsochangethestructureoftheworkforcepotentiallyreducing
barriersforwomentoworkintheindustry,forexample.Theseissuesalsohavesocialimplicationsthat
arenotbeingflaggedinthepublicdiscussionaboutautomation.
Thesepotentialsocialimplicationsofautomationneedtobeconsideredtotrulyunderstandthe
implicationsofautomationforindustrysustainability.
Contrary to the theory of the comparative advantage of minerals in national economy, many
mineral resource rich countries are often outperformed by resource sparse countries often
knownastheresourcecurse(AutyandMikesell,1998).GoodmanandWorth(2008)haveargued
thatthenegativeimpactsassociatedwiththeresourcecurseareofpolitical,social,environmental
and economic nature. According to Goodman and Worth (2008), a nation suffering from the
resourcecurserealiseshugegainsfromexportofminerals,whichstrengthensthelocalcurrency
(because other nations must buy its currency to obtain the commodity, forcing the price of the
currencyup).Thisalsomeansthecountrysotherexportsbecomemoreexpensive,decreasingthe
competitiveness of other sectors that produce internationally tradable goods. Furthermore, the
strongercurrencymakesimportingforeigngoodscheaper,increasingthecompetitionforlocally
producedgoodsonthenationalmarket(GoodmanandWorth,2008;Palma,2005).
Box2.byFionaHaslamMcKenzie,CurtinUniversity
SocialPressuresfromIronOremininginthePilbara
TheWesternAustralianPilbaraironoreregionhasbeeneconomicallyveryimportantbutthescaleand
rapidityoftheindustryhavehadsignificantsocialimpactswhichhavenotbeenwellunderstoodand
consequently,notcarefullyplannedfor,ortheensuingoutcomesproperlyaddressed(HaslamMcKenzie
andBuckley2010).
Thedemandforadequateaccommodationforexample,hasoutstrippedsupply,pushingpricesto
unprecedentedlevelsandsqueezingoutotherindustriesandsectorswhichcannotcompeteinthehighly
inflatedpropertymarket,creatingmonoeconomies.Theuseofnonresidentialworkforceinvolvingblock
shiftsandlongdistancecommutingisbecomingcommonintheminingindustryandassociatedindustries
acrossAustralia(seeHaslamMcKenzie2011).
Anumberofcommentatorshaveraisedconcernsregardingregionaldevelopmentandissuesaroundthe
potentialimpactsofrapidmininggrowthonworkers,families,miningcommunitiesandtheprovisionof
infrastructureandservices.
32
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
THEIR
InAustraliasteelproductionoccursatintegratedfacilitiesfromironoreoratsecondaryfacilities,
which produce steel mainly from recycled steel scrap. Integrated facilities typically include coke
production,blastfurnaces,andbasicoxygensteelmakingfurnaces(BOFs),or,historicallyatleast,
insomecasesopenhearthfurnaces(OHFs).Rawsteelisproducedusingabasicoxygenfurnace
from pig iron produced by the blast furnace and then processed into finished steel products.
Secondary steelmaking most often occurs in electric arc furnaces (EAFs). However, the OHF
technologyforsteelproductionisbecomingobsolete,andarealsonotusedinAustralia.
PhosphorustendstobeassociatedlargelywiththegoethiteinAustralianironores,
DevelopingaheattreatmentleachroutetoremoveP,
ResultsreductioninPlevelto0.06%P(quiteacceptable)bybeneficiation
33
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
ReverseflotationforremovalofSiandAl
Bioflotationandbioflocculation
34
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Table10:Oremineralogyandsuggestedconcentrationmethodforironores(modifiedfrom:Silvaetal.,
2002
MainMineralogicalFeatures
FineSizeRange(1mm)
HGMS
REDMS
Spiralling
Heavy
Media
CoarseSizeRange(+1mm)
LIMS
HGMS
REDMS
Jigging
Heavy
Media
DOM=Hematite
R
NR
SR
ISC
NA
R
NR
SR
ISC
DGM=quartzwithlow
amountofAlminerals
DOM=hematite
R
R
R
ISC
NA
R
R
R
ISC
DGM=gibbsitewithlow
mediumamountofquartz
DOM=magnetite
NR
ISC
NR
NR
SR
NR
ISC
ISC
NR
DGM=quartz
DOM=goethite
R
NR
ISC
NR
NA
R
NR
R
NR
SOR=hematite
DGM=quartzwithlow
amountofAlbearing
minerals
DOM=hematite
R
NR
ISC
NR
NA
R
NR
R
ISC
SOR=goethite
DGM=quartzwithlow
amountofAlbearing
minerals
DOM=hematite
R
NR
ISC
ISC
NA
R
SR
R
NR
SOR=hematite+magnetite
relicts
DGM=gibbsitewithlow
amountofquartz
NA
NA
NA
NA
NA
NR
R
R
SR
DOM=hematite,compact
particles
DGM=quartz+wasterock
contamination
DOM=hematite
R
SR
ISC
NR
NA
ISC
R
ISC
NR
DGM=quartzwiththe
presenceofsecondary
phosphorusbearingminerals
(e.g.wavellite)
Notes: DOM dominant oremineral ; DGM dominant gangue mineral ; SOR secondary oremineral ; R
recommended ; NR not recommended ; SR strongly recommended ; ISC in some cases; MS magnetic
separation;HGhighgradient;LIlowintensity;REDrareearthdrum.
The criteria for the selection of the most suitable beneficiation method for each application
includeaseriesofparameters;themostimportantamongthemisrelatedtooremineralogy.So,
theunderstandingaboutconstituentmineralsisthekeyinevaluatingthesuccessofanymineral
processing operation. For example, the gravity method is employed for some, such as the
separation of the heavier ore minerals from a lighter gangue (or waste) material in a suitably
chosenheavymedium.Ontheotherhand,themagnetiteores(magnetic)arebeneficiatedbylow
intensity magnetic separators (wet drum), sometimes in combination with flotation and gravity
methods. Figure 15 presents a typical iron ore beneficiation flowcharts in respect of hematite
ores.
35
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Conventionally,thebeneficiationofhematiteironoreinvolvestheuseofvariouscombinationsof
processsteps,suchascrushing,grindingormilling,concentrationorseparationbysizeorweight
suchasbyascreenand/orspecificgravity,asbyahydraulicclassifier,andconcentrationwiththe
aid of flotation agents, as in froth flotation, or by means of a magnetic classifier (Figure 15).
However,theexactmethodvariesdependingupontheironandganguecontentoftheores.High
Fecontentandlowaluminaandphosphorouscontentsinironorereducethisproportion.Hence,
qualityofrawmaterialsplaysanimportantroleindecidingwhichbeneficiationprocessbestfits
foraparticularoretype(Raoetal.,2001).Thevariabilityofbeneficiationmethodsfromsitetosite
isasaresultofheterogeneitymineraldepositsexhibit(astheyarecreatedbynaturalprocesses)
andthusthereisnosinglemethodwhichcouldbecomeapplicabletoeverysituation.
Ontheotherhand,magnetiteminingandvalueaddingismuchmoreintensivethantheprocess
required for the more traditionally mined hematite ore. Figure 16 presents the magnetite
concentrationprocessflowsheet.Inthis,oncethemagnetiteoreisextracteditmustgothrough
intensive/successiveprocessstepstoseparateoutandcrushthemagnetiteintoaconcentrate
fordirectexportorforconversionintopellets.Thefirststepistofeedtheorethroughaprimary
crusher, either located within and/or outside the pit. The crushed ore is then transported to a
concentrator, which is comprised of a series of mills and other processes (Figure 16). The mills
produceafineorestreamthatcanbeseparatedbymagneticseparatorstoeitherconcentrateor
tailings.Theresultingconcentratewillbethickenedandfilteredtoreducemoisture.Somepartof
the concentrates is then shipped directly to China for use in blast furnaces, with the remainder
beingformedintopelletsandfiredforhardness.
36
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Figure15:AtypicalironorebeneficiationflowchartforhaematiticfinesfromGoa(India)(SociadadeDeFomentoIndPtyLtd)(Reddy,1998)
37
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Open pit
mine
Primary
crusher
Coarse
ore pile
Slurry
Autogenous
Secondary Magnetite
thickener
pipeline
grinding
classifying
mill
cyclone
Rough
magnetic
Pebble
Concentrate
Finishing
separator
crusher
pump
magnetic
separator
Primary
Regrind
classifying ball mill
cyclone
Classifying
screen
Tailing
thickener
Tailing
dam
Filter cake
storage bin
Slurry Filter
tank press
Binder Balling
bin
drum
Grate kiln
pelletiser
Magnetite
pellet &
concentrate
stockpiles
Conveyor
Concentrate
launder
Figure16:TypicalmagnetiteorebeneficiationflowchartsforAustralia(CiticPacificMining,2010)
38
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Figure17:SchematicofsteelBOFsteelmakingtechnologyanditsrelevantenvironmentalinput/output
indicators(modifiedfromWSA,2010c)
39
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Figure 18: Schematic of steel EAF steel making processes and its relevant environmental input/output
indicators(modifiedfromWSA,2010c)
40
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Europeancommunityforreducinggreenhousegas(GHG)emissions.Theseamounttoanaverage
offivepercentagainst1990levelsoverthefiveyearperiod20082012.Morethan80%percent
ofthisconsumptionisunavoidablebecauseitisrequiredforthebasicchemicalreactioninablast
furnaceconvertingironoreintoiron.Figure19belowcomparessteelproductiontechnologiesand
associatedenergyintensitiesinGJpertonneofcrudesteelproduced(WSA,2009).
Secondary
Steel
Production
fine ore
Raw
material
preparation
coal
pellets
recycled
steel
coke
Iron
making
natural gas,
oil or coal
blast
O2
natural
gas,oil
shaft
furnace
hot metal
air
coal
DR
BF
recycled
steel
oxygen
natural
gas
rotary kiln fluidized
furnace
bed
DRI
recycled steel
Steel
making
OHF
26.4 - 41.6
BOF
EAF
EAF
9.1 - 12.5
Figure19:Steelproductionroutesandenergyintensities(modifiedfromWSA,2009)
Iron and steel making consumes large quantities of energy, mainly in the form of coal. The
Australian steel industry of has taken enormous strides over the past five decades to reduceits
specific energy consumption (SEC) (energy use per ton of crude steel (tcs) produced) between
1996and2010(Figure20).TheSECforsteelproductionwasderivedfromtheannualreportsof
BlueScope(BlueScopeSteel,2010).
Despitethisrelianceoncoal,theAustraliansteelindustryiscontinuouslyseekingwaystoreduce
its energy intensity through improved operational practices and a range of energy efficiency
projects, such as Efficiency Opportunities (EEO) program of Australian federal government. This
programinvolvesdetailedassessmentsofenergyuseandtheidentificationofpotentialsavings.
During19962006, the energy intensity in Australian steel industry has gone down by
approximately 1.5% percent/annum. However, in 2009, with lower production rates and an
associatedreductionineconomiesofscale,theenergyintensitywashigherthanhistoricallevels
(Figure20).
41
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
27
26
25
24
23
22
21
20
1996
1998
2000
2002
2004
2006
2008
2010
Figure20:Specificenergyconsumptioninthesteelindustry(Australia)(tcstonnesofcrudesteel)
Table 11 (below) shows the comparative performance of both BOF and EAF steelmaking
processes. These methods have been compared based on their environmental resource and
energy uses and the associated emissions to air and water and solid waste generation. Further,
according to the World Steel Association (2010c), in the 1970s and 1980s, a modern steel plant
needed an average of 144 kg of raw material to produce 100 kg of steel. However, with
investmentsinresearchandtechnologyimprovementsthesteelindustrytodayusesonly115kg
ofinputstomake100kgofsteela21%reduction.Thisdemonstratesthefactthatmodernsteel
making technology has embraced cleaner production technology options in their daytoday
activities,contributingtoprocessstewardship(althougharguablyforeconomicreasonsasmuch
asforenvironmentalreasons).
42
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Table11:Environmentalinput/outputindicatorsforBOFandEAFsteelmaking
Rawmaterials
Ironore
Pigiron
scrap
Metallicinput
Coke
Lime
Dolomite
Alloys
Coal/anthracite
Graphiteelectrodes
Refractorylining
Energy
Electricity
Naturalgas
Cokeovengas
Steam
BFgas
Compressedair
Gases
Oxygen
Nitrogen
Argon
Water
*
LSLiquidsteel
Input
Units
BOF
*
Output
Units
BOF
EAF
kg/tLS
kg/tLS
kg/tLS
0.0219.4 nil
788931 018.8
101297 10091499
kg/tLS
kg/tLS
kg/tLS
kg/tLS
kg/tLS
kg/tLS
kg/tLS
kg/tLS
060
00.36
3067
028.4
1.333
nil
nil
nil
10271502
15.419.4
25140
024.5
14.425.9
0.991
26
338
MJ/tLS
MJ/tLS
MJ/tLS
MJ/tLS
m3/tLS
Nm3/tLS
35216
44730
058
13150
0.555.26
826.0
15842693
501500
nil
33251
nil
nil
m3/tLS
m3/tLS
m3/tLS
m3/tLS
49.554.5
0.551.1
2.318.2
0.841.7
565
5.912
0.791.45
3.7542.8
EAF
Products
Liquidsteel
Emissions
Kg
1000
1000
CO2
kg/tLS
22.6174
82.4180.7
3937200
8.255
10143
0.010.08
45.15
0.170.98
nil
10
0.055.5
10600
4500
0.0034.3
nil
0.0752.85
3.2252
9970
350700
124335
nil
nil
101206
0.7524
2.815
0.056.4
2.37.7
nil
nil
0.36
70343
1030
nil
nil
nil
1.622.8
4.3
nil
CO
kg/tLS
NOx
g/tLS
Dust
g/tLS
Cr
g/tLS
Fe
g/tLS
Pb
g/tLS
SOx
g/tLS
PAH
mg/tLS
Energy
BOFgas
MJ/tLS
Steam
MJ/tLS
Solidwastes/Byproducts
Alltypesofslag
kg/tLS
Dusts
kg/tLS
Spittings
kg/tLS
Rubble
kg/tLS
Millscale
kg/tLS
Wasterefractories
kg/tLS
Ferroussludge
kg/tLS
Wastewater
m3/tLS
43
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
10
World
Australia
1,250
Production (Mt)
EAF
Steel
6
1,000
750
EAF Steel
500
Other Steel
2
250
0
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Other Steel
0
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Figure21:SteelproductiontrendsinAustraliaandtheworld(TotalandEAFroutes)
7.4. How does Australia compare with rest of the world in steel
recycling?
TheideacoinedbyJacobs(1969)thecitiesoftodayaretheminesoftomorrowassumesgreater
importance, particularly in the context of metals recycling. The proposition of the author has
profoundpracticalimplicationsforourmoderntimes,particularlyinthecontextoftheperceived
mineralresourcesshortage.Theworldsteelindustryhastakenenormousstridesoverthepastfive
decadestoreduceitsecologicalfootprintthroughmaximisingtherecyclingrate(RR)ofoldsteel
(endoflife steel products), which is defined as the consumption of old scrap plus the
consumption of new scrap divided by apparent supply, measured in weight and expressed as a
percentage.
Almost all steelproducing countries are striving hard to improve their recycling performance,
whichhasresultedinimprovedrecyclingratesintherecentpast.Figure22presentsthecaseof
steel can recycling in selected countries in the world. The example of steel can recycling can
therefore be used to gauge our ability in scrap collection and recycling (overall steel recycling
rates). This also illustrates Australias performance in steel recycling in comparison with rest of
countries in the world. It underpins the important fact that Australia lags behind many other
countriesintheworldinrecycling.
44
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
90
80
70
60
50
40
30
20
10
0
Japan
USA
Australia
Brazil
Europe
China
Figure 22: Steel can recycle rates in the world in 2007 (defined as proportion of cans captured and
recycled)(Yellishettyetal.,2011)
AlthoughRRisnotthebestmetrictojudgeourabilitytorecovermaterialsfromanthropogenic
enginesbeforetheybecomedissipatedintothelithosphere,itcouldbeusedtogaugeourability
torecoverthescrapfromdifferentsourcesandputbackintonewsteel.AlthoughRRrepresents
only the extent to which scrap was used in producing a particular consumer good, it does not
indicate the efficiency of recovery of available scrap material. In fact, recycling efficiency (RE) is
theappropriatemetrictojudgeourabilitytoharvest(thepotentialofrecovery)ofmaterialbefore
itsdissipationtothelithosphere(throughlossessuchascorrosionandwearandtear).REcanbe
defined as the ratio between the amount of old scrap recovered and reused relative to the
amountofscrapactuallyavailabletoberecoveredandreused.AlthoughREisabettermetric,no
datathatexistonREworldwide.Itisthereforeimperativethatthesteelindustryembarksonthe
taskofusingtheinformationtoachievematerialstewardship.
7.5. Iron ore and steel substance flows and sustainability issues
Table 12 and Figure 23 presents mass flows of iron ore and steel (includes crude, finished and
semifinishedproducts)intoandoutof the Australiaanddifferentcountries.Theseflowsofiron
ore and steel clearly indicate that the weak end of steel industrys trade is the seaborne
transport,whichisalsoamajorenvironmentalchallengefortodayssteelindustry(Yellishettyet
al.,2010).Evenastheseabornetransportbecameveryconvenientandeconomicalternativefor
theintercontinentalmassmovementofgoodsatverymarginaladdedcostsmakingitfinancially
sustainablethe real issue is of its environmental sustainability in longer term. This is of greater
concern particularly in the context of present challenges posed to our global climate and its
anticipatedviciouseffects.
45
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Table12:ImportsandexportsofAustralianironoreandsteelproductsintheyear2010
IronOre
Steel
Imports
FromCountry
kt
N.Caledonia
2,300
Brazil
1,192
Philippines
943
Indonesia
845
Canada
150
SouthAfrica
58
Exports
ToCountry
kt
China
273,767
Japan
75,585
RofKorea
38,558
Taiwan
12,031
Netherlands
1,452
France
296
India
152
USA
0.1
GrandTotal
5,488
FromCountry
Confidential
China
Japan
Taiwan
Singapore
R.ofKorea
NewZealand
India
Malaysia
Spain
Sweden
SouthAfrica
UK
USA
Indonesia
Mexico
Germany
Thailand
Belgium
Finland
Italy
Turkey
Netherlands
Canada
401,840
Imports
kt
FromCountry kt
807.8 Israel 3.2
204.3 Australia 3.0
196.6 France 2.8
122.8 VietNam 2.5
121.2 Poland 1.6
90.0 HongKong 1.3
79.4 CzechR. 1.1
62.0 Denmark 1.1
60.0 Austria 1.0
37.7 Brazil 0.9
28.6 UAE
0.7
24.1 Russia 0.5
22.0 Romania 0.4
17.3 SaudiArabia 0.3
15.8 Switzerland 0.3
14.7 Ukraine 0.3
12.5 Peru 0.2
11.6 Norway 0.2
11.1 Portugal 0.1
10.3 RofSlovak 0.1
7.5 VirginIslands 0.1
4.9 Moldova 0.1
4.0
3.9
1,970
ToCountry
USA
RofKorea
Thailand
Brazil
Italy
UAE
VietNam
NewZealand
Malaysia
Indonesia
Taiwan
Chile
Pakistan
Japan
Canada
Belgium
PNG
China
Singapore
India
Israel
Bangladesh
SouthAfrica
Exports
kt
ToCountry
kt
456.9 France 0.4
210.8 Philippines 0.4
188.2 Ghana 0.2
148.5 Kuwait 0.2
143.5 N.Caledonia 0.2
126.7 Colombia 0.2
94.3 SaudiArabia 0.2
55.0 Egypt 0.2
36.4 HongKong
0.2
31.4 Fiji 0.1
20.8 Spain 0.1
16.1 SolomonIslands 0.1
11.5 Sudan 0.1
11.3 Iraq 0.1
9.7 Senegal 0.1
9.3 Turkey 0.1
7.2 Qatar 0.1
6.0 Mauritania 0.1
2.5
2.0
1.1
0.8
0.6
EastTimor
0.5
21.8
1591
3.1
46
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Australia
Steel Scrap
0
1980
1985
1990
1995
2000
2005
2010
Figure23:ExportsofsteelsubstancesfromAustralia(expressedincrudesteelequivalents)
Box3.ReproducedfromSteelStewardshipWebsite
SteelStewardshipForum:pioneeringresponsiblesteel
TheSteelStewardshipForum(SSF)isabodyformed
to develop steel stewardship in Australia and a
stewardship scheme across the entire steel supply
chainandforthistobeatemplatetobepresented
byAustraliaattheAPECMiningMinistersForumas
abestpracticemodelfortheregion.
TheconceptoftheForumistobringtogetherallmajorsectorsofthesteelproductlifecyclefrommining
through to steel manufacturing, processing, product fabrication, use and reuse, and recycling in the
shared responsibility of working together to optimise the steel product life cycle using sustainability
principles including minimising the impact on society and the environment. The SSF believe that
collectivelywecancontinuetoaddvaluetoandimprovetheperformanceofthesteelindustryacrossthe
wholeproductlifecycletherebyreducingnegativecommercial,socialandenvironmentalimpacts.
The Steel Stewardship Forum is seeking to develop a credible and independently verifiable steel
certification scheme, to be known as Responsible Steel, that seeks to minimise impact and improve
performancethroughoutthesteelvaluechain,recognisedbytheindustryandexternalstakeholders.
Formoreinformationseehttp://steelstewardship.com
47
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Box2.byDanielFranks,UniversityofQueensland
Theuseofcharcoalinsteelmaking:asustainablealternative?
CSIRO are currently exploring the use of charcoal (made from biomass) as a sustainable alternative fuel
and reductant replacing metallurgical coal in ironmaking and steelmaking. Life Cycle Assessment on
biomassalternatives,conductedbyCSIRO,indicatesthepotentialformarkedreductionsingreenhousegas
emissionsinvarioussteelmakingroutes(seeNorgateandLangberg,2009).
TheCentreforSocialResponsibilityinMining(CSRM),aspartoftheMineralFuturesCollaborationCluster,
hasworkedwithCSIROtoconductaSocialLifeCycleAssessmenttofurtherassessthesocialsustainability
ofbiomassproductionviatheuseofsocialimpactindicators(seeWeldegiorgisandFranks,2012).
The social performance of two biomass alternatives, Radiata pine plantation forestry and Mallee
revegetation on agricultural land, were assessed against metallurgical coal and each other. Social
performance was assessed using landuse, employment and workplace health and safety as impact
indicators.Aqualitativeanalysisofidentifiedstakeholderissueswasalsoundertaken.
Findings
Nouniquesolutionexistsforoptimisingthesocialperformanceofthetechnologyalternativesacrossallof
theindicators.
Biomass alternatives, both Radiata and Mallee, were found to be significant generators of direct
employmentattheregionallevel(2.96x103pertonneofsteelforcharcoalproducedfrompinebiomass
comparedto1.35x103formetallurgicalcoalandcokeproduction).However,theywerealsoidentifiedas
havingconcomitantlyhigherratesofworkplaceinjuries(6.26x105pertonneofsteelforpinecompared
to1.24x105pertonneofsteelforcoal).Thescaleeffectsofashifttobiomasstechnologiesonlanduse
aresignificant.Whencomparedtometallurgicalcoalbiomassalternativesrepresenta197foldincreasein
landuse(1.97x101hectarespertonneofsteelcomparedto1x103forcoal).
48
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Sustainabilityissues:landusecostandconflict
ProductionofpineplantationforestryinAustraliawouldberequiredtoincreaseby67%toaccommodate
thefullsubstitutionofcoal(anadditional1.35millionhectaresunderplantationforestry).
Landuse conflicts have been associated with plantation forestry expansion, with even revegetation
projects undertaken for conservation generating local level dissatisfaction and competition with other
landuse in some cases. On the other hand, local level conflicts have also manifest from the community
healthandamenityimpacts,andsubsidenceeffectsassociatedwithmetallurgicalcoalmining,despitethe
relativelysmallareaoflandimpacted(1x103hectarespertonneofsteel).
CharcoalproducedfromMalleebiomassplantedasaconservationmeasureonfarmlandhasthebenefitof
representing a shared landuse that in turn supports farm employment through an additional revenue
streamandthemanagementofdrylandsalinity.
49
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
8. POLICY DRIVERS
Australiasnaturalresourceshavebeenanintegralpartofitseconomicdevelopmentforthe
past several decades. Australias mineral endowment is providing a basis for higher living
standards and also acting as a driver for economic and social change for several decades
now(Mercer,2000).
The rise of economic prosperity in China and India coupled with countries like Brazil and
Russia (so called BRIC countries), indicates that their relatively strong economic growth
and consequent demand for resources could well continue into the next few decades,
meansitisreasonabletoexpectthattherewillbearelativelyslowunwindingofhistorically
highnonruralcommodityprices.Itisthereforeimportanttoharnessthepotentialstrength
ofthisresourceendowmentanduseittothecountriesstrategicadvantage.
ItwasalsoobservedbyYellishettyetal.(2011)thatthereisperiodicvolatilityforallmetals,
relatedmainlytofluctuatingeconomicconditionsandminingboom/bustcycles(Figure24).
Itisthismarketvolatilitythatisdetrimentaltomanymineraldependenteconomies,which
relymoreonforeignexchangeearningsforplanningtheirdevelopmentalactivities(Davies
andTilton,2005.DaviesandTiltonnotethatthatmanyofthesecountrieshavecommodity
stabilizationfunds,whichtheycontributetowhenpricesarehighandwithdrawfromwhen
pricesarelow(2005).
550
550
500
Lumps
Pellets
500
450
Fines
Scrap
450
Pig Iron
Slabs
350
300
250
200
350
300
250
200
150
150
100
100
50
0
1987
Billets
400
Prices (US$/ton)
Price (US$/ton)
400
50
1990
1993
1996
1999
2002
2005
0
1989
2008
1994
1999
2004
2009
Figure24:pricesofironoreandscrap(left);pigiron,billetsandslabsintheworld(right)(nominal
US$)
Although the direct effect of higher commodity prices is to increase Australias national
income through contributing to GDP, natural mineral wealth may not always convert into
highersustainedgrowthorwellbeingoverall.AccordingtotheBudgetStrategyandOutlook
(2010), not all resourcerich countries have been able to translate resource wealth into
sustained economic performance, and there may be some costs associated with natural
resource wealth. But while many resourcerich countries have at times lagged behind in
economicperformance,otherssuchasAustraliahavedonerelativelywell(Yellishettyetal.,
2011).
50
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Furthermore,BudgetStrategyandOutlook(2010)arguesthatontheotherhand,previous
experience in Australia and worldwide points to the risk that marked increases in natural
resource wealth can undermine economic reform and sound fiscal policy reducing the
gainstonationalincomeandskewingtheirdistribution.
The negative impacts associated with the resource curse are of political, social,
environmentalandeconomicnature(GoodmanandWorth,2008).Anationsufferingfrom
theresourcecurserealiseshugegainsfromexportingminerals,whichstrengthensthelocal
currency(becauseothernationsmustbuyitscurrencytoobtainthecommodity,forcingthe
price of the currency up). This also means the countrys other exports become more
expensive, decreasing the competitiveness of other sectors that produce internationally
tradable goods. Furthermore, the stronger currency makes importing foreign goods
cheaper, increasing the competition for locally produced goods on the national market
(Goodman and Worth, 2008; Palma, 2005). While struggling with maintaining its national
and international market share, the already weakened nonmining sectors face additional
challenges competing with the high salaries paid by the booming resource sector.
Ultimately, the point is reached when the sector can no longer attract the workforce
requiredtoremaincompetitiveorviable.Thiseffectisworseincountriesthatarecloseto
full employment and have difficulty supplementing the workforce through migration
(PapyrakisandGerlagh,2003;StevensandDietsche,2008).
Therefore,itmaybeimportanttoensurethattheroleofpolicymustensurebuildingonthe
strongstartingpointandtoensurethattheAustraliancommunitysharesinthebenefitsof
Australias mineral resources. Therefore it is envisaged that any policy should build the
economyscapacitywhilstbeingflexible,promoteinvestmentinadiversifiedeconomy,and
enhancecommunitywellbeing.Thus,theroleofgovernmentcouldbecomeparamountin
bringing reformist mineral policies that can take full advantage of this abundant natural
capital. The role of a mineral policy must be ensuring that the benefits as a result of
mineralsandtheirexportspercolatedowntothecommunity.
51
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
9. CONCLUSIONS
This iron ore case study is prepared as part of the Minerals Futures Collaboration Cluster
betweenCSIRO,Monashuniversityandotherpartners.Inthisreport,adetailedreviewof
iron ore has been undertaken, which has focussed on key questions such as currently
reportedmineralresources,oreprocessingconfigurations,andissuesandtrendsaffecting
ironore.
This report presented a comprehensive account of Australian iron ore resources by major
projects, ore types and grades. The study also presented an analysis of production trends
andcomparedthatwithothermajorironoreproducersintheworld.
Through this study it was observed that the Australias iron ore production is increasing
exponentiallywhereasdomesticsteelproductionhasremainedsteadyforquitesometime.
We have also presented analysed the energy consumption in both iron ore and the steel
industryinAustralia.Thespecificenergyconsumptionintheindustrysteelindustryshowed
adecreasingtrendinSEC.
The findings reported in this paper indicate that there is a complex interrelationship
between production technologies, consumption patterns and the domestic and global
infrastructureofthesteelsector.
52
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
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Appendix1:Sustainablemineralreservesmanagementindicatorsreporting(SMRMI)matrixforAustralia2009(Masonetal)
Questions
Whatdowehave?
Whatdifficultiesdoesitpresentintermsofitscompositionasanore?
What difficulties does it present in terms of how a workforce would be
deployed?
Whatdifficultiesdoesitpresentintermsofaccesstoinfrastructuretomine,
mill,refineandtransporttheore?
Dowehavemoreorlessthanothernations?
Howmuchofthemineralismineablenow?
Howfastarewecurrentlyextractingthemineral?
Howlongwillthisresourcelast,ifproducedatthecurrentrateofextraction?
Isthequalityofthemineralsbeingminedandprocesseddeclining?
Economicimpacts
Whatisthecontributionofminingandprocessingtonationalwealth(GDP)?
Howdoesthiscomparetoothersectorsoftheeconomy?
Whataretheminingcompaniesmakingintermsofprofit?
Whatareminingcompaniesspendingonequipmentorinfrastructure?
Whataretheminingcompaniesspendingonexplorationactivities?
Howmuchmoneyistherelevantstategovernmentreceivinginroyalties?
Howmuchmoneyisthefederalgovernmentreceivingincompanytax?
Environmentalimpacts
Whatarethelanddisturbanceimpactsofminingandmineralprocessing?
Howefficientisthewaterusageofminingandmineralprocessing?
To what extent is mining and mineral processing activity likely to impact on
otherwaterusers?
HowmuchdoesitcontributetoAustralianGHGemissions?
Howmuchdoesitcontributetolocalorregionaltoxinlevels?
Howmuchdoesitcontributetolocalorregionalairqualityissues?
ResourceData
Inventories(a)(1)
Mineralogicalformations
IsitFIFOordoesittakeitsworkforcefromanexistinglocalcommunity?
Indicator
GEO1
GEO2
GEO3
Howremotefromprocessingandtransportisaparticulardepositor
operation?
AustralianAEDRas%ofGlobalEDR
JORCcodereserves(%ofAustralianAEDR)
Productionrate(tonnesand%growthpa)
Lifeofresourceatcurrentproductionrate(years)
Gradedeclinerate(%mineral)
EconomicData
Incomefromsalesofgoodsandservices(a)(1)
Incomefromsalesofgoodsandservices(a)(1)
Companyprofitsbeforeincometax(b)(1)
Privatenewcapitalexpenditure(a)(2)
Mineralexplorationexpenditure(4)
DollarsassociatedwithTonnesmineralsexported
Companyincometaxminusrelevantexceptions
Environmentaldata
Overburdentonnage
Waterusedperunitofmetal
Watersourcedfromrecycledwastewaters.
GEO4
GHGperunitofmetal
NOX,SO2,perunitofmetal
TotalSuspendedParticulatesperunitofmetal?
ProportionofPM10andPM2.5
ENV4
ENV5
ENV6
GEO5
GEO6
GEO7
GEO8
GEO9
ECO1
ECO2
ECO3
ECO4
ECO5
ECO6
ECO7
ENV1
ENV2
ENV3
59
Ironresourcesandproduction:technology,sustainabilityandfutureprospects
Howmuchdoesitcontributeozonedestroyingchemicalsintheenvironment?
Whatproportionofstationaryenergyutilizedinallprocessesisrenewable?
What proportion of stationary energy utilized in all processes is fossil fuel
based?
Whatproportionoftransportenergyisfossilfuelbased?
Socialimpacts
Contributiontoincome?
ContributiontoEmployment:Duration
ContributiontoEmployment:Skills
ContributiontoEmployment:Personsdirectlyemployed
TechnologyData
What role is technology currently playing in making Australian mining and
mineralprocessingviable?
Whatroleistechnologycurrentlyplayinginmakingothernationsminingand
mineralprocessingviable?
What are the opportunities for technology to continue making Australian
miningandmineralprocessingviable?
Atwhatratearenewtechnologiesbeingtakenup?
Howmuchperunitofmetal?
Howmuchenergy(MW)perunitofmetal?
Howmuchenergy(MW)perunitofmetal?
ENV7
ENV8
ENV9
Howmanylitersofdieselorotherfossilfuelsareusedperunitofmetal?
Employmentdata
Whatisthelowest,highestandaveragewage?
Whataretheshortest,longestandaverageperiodsofemployment?
Proportionofworkforcewithnationallyrecognizedvocationaltraining?
Howmanypeopleareemployed?
Innovation&R&D
Technologies being used in Australian mining and mineral processing
operations
Technologies are being used in mining and mineral processing operations
elsewhere
Technologiesbeingpursuedtocurrentoranticipatedproblems.
ENV10
Towhatextentareinnovativetechnologiesbeingputinplaceatsites?
SOC1
SOC2
SOC3
SOC4
TEC1
TEC2
TEC3
TEC4
60